ValueXpress has arranged a $5.2-million loan for the purchase of the Fairfield Inn & Suites – Chattanooga South/East Ridge. The three-story hotel was recently renovated to the latest Marriott brand standard by the prior owners who elected to sell the property with the work completed.
The property is located on North Mack Smith Road in the East Ridge section of South Chattanooga. Hotel rooms feature comfortable new bedding, free Internet access and spacious work areas. The hotel features a complimentary breakfast, indoor pool, gym, meeting room and business center. The property is in immediate proximity to the new Bass Pro Shop in East Ridge and I-75 access to downtown Chattanooga.
“The transaction was challenging as the sponsor required 80% non-SBA financing and a long-term fixed rate,” commented Gary Unkel who originated the deal with Charlie Lobetti from the ValueXpress Southeast office. “However, Charlie tapped into his 20 years of banking contacts and found a community banking relationship that liked the sponsor and property. They stepped up and financed 80% of the purchase price.”
“The loan provided for a 5-year fixed-rate at 4.5% that pays on a 25-year amortization schedule and is recourse to the principals of the borrower,” explained Charlie. “The sponsors would have preferred a longer fixed-rate term, but the 80% leverage was most critical and the sponsors were very pleased with the results provided by ValueXpress.”