ValueXpress has arranged an $8-million CMBS conduit loan for the refinance of a Candlewood Suites constructed in 2015. Located 20 miles southeast of Nashville off I-24 in Smyrna, Tennessee, the property is a 4-story, 87-room, extended-stay, interior-corridor hotel constructed by the sponsors to Candlewood Suites brand standards. The property is located midway between Nashville and Murfreesboro, Tennessee.
The property offers an outdoor pool, fitness room, lobby workstation, market pantry, Lending Locker, guest laundry and outdoor patio and BBQ area. The Candlewood Suites property is located in proximity to shopping, restaurants, attractions and businesses. The area is home to multiple distribution and logistics centers, including Bridgestone, Firestone, Saks Fifth Avenue, Essex, Cardinal Health, and Saint Thomas Rutherford Hospital. Smyrna is home to the Nissan Vehicle Assembly and Battery Plant, a 6.5-million-square-foot facility that manufactures more than 650,000 Altima, Maxima, LEAF, Rouge, Pathfinder, and Infiniti QX60 vehicles annually.
“The transaction was challenging due to a significant amount of new room supply that opened in the market in the past 24-36 months, including a TownPlace Suites by Marriott and an Uptown Suites,” commented Gary Unkel, Senior Loan Originator at ValueXpress who arranged the transaction. “Moreover, a dual branded Home2 Suites and a Best Western Plus are under construction.”
“I was able to show the market absorbing all the supply and the subject hotel maintaining and improving its RevPAR penetration as well,” said Unkel. “This was imperative to the success of the transaction as the loan proceeds provided a return of cash equity to the sponsor that exceeded his cost basis.”