We recently closed a $5-million hotel loan secured by a Hampton Inn in Florida. During property diligence, we noticed a $25,000 legal fee under the “professional expense” category on the profit and loss statement. Since we figured it was a one-time expense, we wanted to back it out of the … [Read more...] about 7.29.14: Predatory ADA Litigation of Major Concern for Hoteliers
Archives for July 2014
7.25.14: Lighter Lockboxes for Hotels
In a further indication of the loosening of credit standards, the typical soft lockbox/springing cash management requirement as defined by Wells Fargo (see below) for hotels has been reduced to the springing lockbox/springing cash management structure. “Our borrowers really had no conceptual problem … [Read more...] about 7.25.14: Lighter Lockboxes for Hotels
7.23.14: Standard and Poor’s in Hot Water over CMBS Ratings
The Wall Street Journal reported that the Securities Exchange Commission (SEC) notified Standard and Poor’s Rating Services (S&P) that it could face an enforcement action for alleged securities fraud regarding six commercial real-estate securities deals in 2011. It was not immediately clear … [Read more...] about 7.23.14: Standard and Poor’s in Hot Water over CMBS Ratings
7.14.14: Out-of-Market SBA Lending on the Rise
American Banker recently reported that more community banks are offering Small Business Administration (SBA) loans far beyond their local markets, hoping that the income boost outweighs the long-term risk of lending in unfamiliar regions. Strong demand for SBA loans and a strong secondary market … [Read more...] about 7.14.14: Out-of-Market SBA Lending on the Rise
7.12.14: A ValueXpress Success Story
"I wanted to share with readers a recent experience that typifies our mission to help clients and why I come to work every day," said Michael D. Sneden, Executive Vice President at ValueXpress. ValueXpress recently received a loan request from one of its key intermediaries for a hotel loan in San … [Read more...] about 7.12.14: A ValueXpress Success Story
7.10.14: CMBS Conduit Loan Originations Explode on Lower Rates
“Commercial Mortgage Alert” recently reported that CMBS issuance dropped 8% in the first half of 2014 versus a year ago. The decline was blamed on competition from the community banking system, which is now hungry for commercial real estate loans after cleaning up its balance sheets after the … [Read more...] about 7.10.14: CMBS Conduit Loan Originations Explode on Lower Rates
7.1.14: Sizing Cheat Sheet for Non-Recourse Hotel Construction Loans
We recently had a conference call with our non-recourse construction lender who laid out a nifty concept to perform a "rough and dirty" loan sizing for hotel construction loans. ValueXpress will be converting these instructions into a simple model that can be found on our website. As a refresher, … [Read more...] about 7.1.14: Sizing Cheat Sheet for Non-Recourse Hotel Construction Loans
