ValueXpress has arranged a $6.3-million CMBS conduit for the refinance of a four-story Cambria Suites hotel constructed in 2008 by the sponsor. The hotel is located in Indianapolis, Indiana, approximately 10 miles from Indianapolis International Airport.
The hotel is located in proximity to corporate headquarters for the American Legion and Indiana State Nurses Association. In addition, the Capital Sports Center, Lucas Oil Stadium and Indianapolis Motor Speedway are nearby.
The property features a host of amenities, including three meeting rooms, catering services, guest laundry, a fitness center and high-speed wireless Internet access. All guest rooms offer two flat-screen televisions, spa-like baths, microwave, refrigerator and gourmet coffee. Rooms feature Hub plug-and-play technology for laptops, MP3 players, and digital cameras. The property has an indoor pool and hot tub, full-service bar and a grab’n’go sundry shop.
“The sponsor selected a 5-yr loan term with a 25-year amortization schedule for the $5.45-million CMBS conduit portion of the loan because the sponsor believes cash flow will increase rapidly as Indianapolis recovers from the recession,” explained Gary Unkel, Senior Underwriter at ValueXpress who originated the loan. “In addition, the loan was structured with an $850,000 mezzanine loan that together with some sponsor equity was required to pay off the total balance of the prior loan. We are one of the few firms that can access small balance mezzanine loans to bridge a shortfall in loan needs that cannot be satisfied solely with a first position CMBS conduit loan.”