ValueXpress obtained a $4-million first-mortgage loan commitment from its New York banking partner, Country Bank, for an independent limited service hotel in Brooklyn, NY. The property is a 4-story and basement 62-room limited service non-franchised hotel operating under the dba of Imperial Hotel. The property was newly constructed in 2007. The building is “L” shaped with frontage on both East New York Avenue and Alabama Avenue. The building contains 6 rooms with double beds, 6 Jacuzzi rooms and 50 king/queen/single rooms. In addition, the property offers a lobby, check-in area and exercise room. The property is subject to a land lease with a 45-year term that expires in 2050, with one 25-year option to renew. As a result, the security for the loan will be a first leasehold mortgage.
“Country Bank stepped up for this client by increasing its current $2.875 million loan to $4 million, allowing the borrower to recoup equity for another hospitality project,” said Michael D. Sneden, Executive Vice President of ValueXpress. “In this environment where banks are reducing exposure to hospitality, Country Bank is increasing its exposure for good properties, which is terrific news for borrowers.”