ValueXpress obtained a $9.5-million first-mortgage loan commitment from a N.Y.-based community bank to refinance a $7.0-million loan that was arranged by ValueXpress five years ago with Community National Bank that is now maturing. The loan provides $1.5 million of proceeds to complete a Property Improvement Plan (PIP) to upgrade the hotel to the latest “Formula Blue” brand standard.
The subject property is a 6-story, 115-room, limited-service, interior-corridor hotel constructed by the sponsor to Intercontinental Hotel Group (IHG) brand standards in 2008. The property features 75 king rooms and 40 queen-queen rooms, 12 of which are suites. Free parking is available at the rear of the hotel. Amenities include complimentary breakfast, meeting room, fitness center, business center, parking facility, in-room safes, high-speed wireless Internet access and 42-inch LCD TVs. The property recently was approved for a new 10-year franchise license renewal through 2028.
“The transaction was challenging as the property is encumbered by a land lease. The original lease term was 45 years and now there is only 33 years remaining, which was a concern for lenders,” commented Jim Brett, the ValueXpress loan underwriter on the transaction.
“This is the sixth transaction completed for this client, and we maintain a long-standing relationship dating more than ten years,” said Michael D. Sneden, Executive Vice President of ValueXpress. “The sponsor is very happy.”