ValueXpress has arranged a $6,150,000 CMBS conduit loan for the refinance of a four-story LaQuinta Inn & Suites hotel constructed in 2020. The loan provided an opportunity to pay off an existing SBA 7(a) loan, which will provide the sponsors eligibility for a new SBA 7(a) loan to construct another hotel property. The new CMBS loan features a 10-year fixed rate and pays on a 25-year amortization schedule, eliminating interest rate risk associated with the former floating-rate SBA 7(a) loan.
The hotel is located off I-40, 23 miles from Petrified Forest National Park and is the closest nationally franchised hotel to the park. Named for its large deposits of petrified wood, the park covers about 346 square miles, encompassing semi-desert shrub steppe as well as highly eroded and colorful badlands. The park receives over 600,000 visitors annually.
The transaction was challenged by the remote location of Holbrook, which has a population of only 5,000. To mitigate the concern, ValueXpress provided substantial information on the popularity of the park and supported the hotel’s location on “Historic Route 66” as a popular leisure travel route supporting strong demand for rooms.
This was a first-time CMBS loan for this client, and as with all new and existing clients, ValueXpress guided the client through each step of the process, resulting in a close six weeks from application. The loan was originated by Michael D. Sneden, Executive Vice President at ValueXpress. For your next hotel loan, contact Mike at 212-883-6447 (mikes@valuexpress.com).
