ValueXpress obtained a $7.5-million bridge loan for the refinance of a construction loan that was utilized to build a 94-room Hampton Inn hotel that opened in April 2013. The property is a four-story interior-corridor structure with a stone and stucco veneer exterior. Amenities include a meeting room, exercise room, complimentary breakfast, high-speed internet access, a business center, hot and cold breakfast and an outdoor swimming pool. The property is one of the first Hamptons to feature electric car charging stations in front of the hotel.
The property is 15 minutes from Dallas-Fort Worth International Airport (DFW) and shops at Southlake Towne Square and Grapevine Mills Mall. The hotel also offers easy access to corporations in the Southlake and Grapevine areas.
The loan provides for interest-only payments based on a LIBOR-based index. The loan term with extensions is 16 months. The purpose of this loan is to allow the sponsor to exit an existing loan before closing on an SBA component that would have locked in a substantial prepayment penalty. The bridge loan will allow the property to complete stabilization, at which time a permanent CMBS conduit loan will be closed to replace the bridge loan, likely in six months, as performance in the six months since opening has been outstanding.
“We hope to do more bridge loans similar to this transaction for sponsors that need a stabilization period to qualify for a long-term, fixed-rate CMBS loan,” said Michael D. Sneden, Executive Vice President at ValueXpress.