With the closing of the Speedee Mart and Rounder’s Neighborhood Grill CMBS conduit loan transaction, ValueXpress has closed its 500th transaction for a little over $2.2 billion in loan proceeds. “Our average loan size is around $4.4 million, so you can see that ValueXpress is the ‘go-to’ source for the small balance borrower,” commented Michael D. Sneden, Executive Vice President at ValueXpress. Loan amounts have ranged from $500,000 to over $50 million.
ValueXpress has predominately closed fixed-rate CMBS conduit loans. CMBS conduit loans are a core product for ValueXpress. Approximately 80% of the $2.2 billion in closed loans are CMBS conduit loans. In addition, roughly 75% of the loans have been refinances and 25% of the loans have been for property purchases or change of ownership. As expected, the majority of the refinances have provided unrestricted cash proceeds to the borrower after paying off the prior mortgage. We estimate that we have provided approximately $1 billion in cash proceeds to our borrowers after paying off existing debt!
The balance of our loan closings is a mix of loan products. We have completed numerous bridge loans for income properties that, once stabilized, were typically refinanced into a CMBS conduit loan after the transitional period to property stabilization was completed. We closed over $100 million of loans with our affiliated bank, Country Bank. We have placed a number of loans with community banks through our extensive network of contacts. Finally, we have completed over $200 million of SBA 504 and 7(a) loans, although less so recently as other loan products are more compelling.
“The first 500 loans have been very rewarding for ValueXpress as we know our hard work has provided borrowers, particularly our cash-out borrowers, with the ability to grow their investment portfolios faster than otherwise possible, commented Sneden. “We look to complete another 500 transactions in the coming years!”