ValueXpress has arranged a $4.76-million CMBS conduit loan for the refinance of a three-story Quality Inn and Suites hotel constructed in 2012 and located in Bryan, Texas. The property is situated on Highway 6 near Highway 21, just north of College Station, Texas, home of Texas A&M University. The interior-corridor hotel was built well in excess of brand standards and therefore commands some of the highest room rates within the Quality Inn franchise system.
College Station is home to the main campus of Texas A&M University, the flagship institution of the Texas A&M University system. Due largely to the presence of Texas A&M University, in 2006, College Station was named by Money magazine as the most educated city in Texas and the 11th most educated city in the United States. In the fall 2013 semester, Texas A&M was the fourth-largest U.S. university with an enrollment of 56,255 students pursuing degrees in ten academic colleges.
“The loan was a challenge as the transaction returned all the sponsor’s equity and then some,” explained Jay Bhakta, a Senior Loan Originator at the ValueXpress Jackson, Mississippi office and 15-year ValueXpress veteran. “But we were able to show that the high quality of construction to levels well in excess of brand standard plus the strong demand in the College Station market mitigated the cash-out risk.”