ValueXpress has arranged a $3,250,000 CMBS conduit loan for the refinance of an 81-room Best Western Plus hotel. The sponsors purchased the hotel in September 2015 from the bank in an all-cash transaction. The property was originally constructed in 2011 and operated as a Candlewood Suites until November 7, 2013 when a fire broke out on the third floor. Fire and water damage was estimated to be $500,000 and the hotel was closed. The owners at the time were unable to rebuild, and the property was foreclosed by the lender. Our sponsors purchased the hotel shell from the lender for approximately $2 million and invested roughly $2.7 million to complete the construction of the hotel. It reopened in October 2016 as a Best Western Plus.
The loan was originated by Michael D. Sneden, Executive Vice President at ValueXpress. The transaction sailed through underwriting, but needed many legal issues worked out. Sneden had been through these legal issues before and advised the client through each hurdle.
“We found out last minute that excess land had to be deeded out, so I had a good local Indiana counsel that I used in the past to get it done quickly. We also learned the deeds were incorrect and my guy fixed those as well,” said Sneden. “The sponsor and sponsors counsel did not know how to do a franchise “realignment,” so I did that for them. Thankfully I have been through every scenario over 25 years, so I was able to lead the way through these issues and get the loan closed.”
To obtain a no-obligation loan quote on your next hotel CMBS transaction, contact Michael Sneden at 212-883-6447 or email him at firstname.lastname@example.org.