ValueXpress obtained a $4.5-million first-mortgage loan commitment with its NY banking partner, Country Bank, for the purchase of the fee interest in a 12-story, 97-room interior-corridor limited service hotel originally constructed in 1984 and operated as an independent. The property is located in the heart of Baltimore’s well-known Inner Harbor, in proximity to many of Baltimore’s famous attractions, restaurants and a thriving business district. The property is also near the Baltimore Convention Center, M&T Bank Park, Camden Yards, the Baltimore World Trade Center, Baltimore aquarium and Baltimore zoo.
“This commitment will allow the borrower, a long-time and highly respected client of ValueXpress and Country Bank, to bid on this asset at auction with an assurance that the transaction will be funded by the bank. The borrower has exposure to a substantial hard deposit that must be remitted within 24 hours of the bid,” said Michael D. Sneden, Executive Vice President at ValueXpress. “We are very proud that this particular client has the confidence in ValueXpress and Country Bank to complete this transaction, selecting us as lender despite having other loan offers for more loan proceeds. In the end, our track record of 100% success in funding three prior transactions for this client outweighed the extra proceeds offered by competitors.”
The hotel was a CMBS conduit loan that defaulted and the property was foreclosed by the servicer. It is currently underperforming and requires hands-on management and capital investment to return performance to market levels.