ValueXpress obtained a $9,000,000 community bank loan to refinance a construction loan that was utilized to construct a 6-story, 103-room Wingate by Wyndham hotel located minutes from John F. Kennedy (JFK) airport. This transaction is the second closing completed by ValueXpress for this client. The hotel opened in February 2018.
The hotel is located on Archer Avenue, a short walk from the Jamaica AirTran station, which provides frequent service to JFK Airport. In addition, subway service and Long Island Rail Road (LIRR) service to New York City, LaGuardia Airport, Citi Field (Mets baseball) and other New York City attractions are all easily accessible from the hotel. Hotel amenities include free Wi-Fi, a business center and complimentary continental breakfast.
“The transaction was originally going to be a CMBS conduit loan, similar to the $7.5-million loan we provided for the sponsor’s Howard Johnson hotel in 2015,” noted Gary Unkel, Senior Loan Originator at ValueXpress who arranged both transactions. “However, the sponsor wanted the flexibility to participate in the NYC temporary housing program, which is not allowed by the CMBS market.”
“Relying on our extensive community bank network, I found a community bank that was familiar with and comfortable with the NYC temporary housing program. The bank closed the loan with very competitive terms and the client is very happy with the result,” commented Unkel.