ValueXpress Obtains a $2,550,000 Loan to Refinance a Limited Service Hotel in Upstate NY

ValueXpress closed a $2,550,000 first mortgage loan secured by an Econolodge limited service hotel located in upstate New York. The 5-year fixed-rate loan carries an interest rate in the mid-6% area and is full recourse. The loan was closed through the owner-occupied loan program offered by ValueXpress. The loan does not have an SBA component. The property is a 72-room interior-corridor property serving a college community. The refinancing allowed the borrower to refinance the loan held by an out-of-territory commercial bank that did not want to extend the loan. The loan included working capital that was utilized to pay for some cost increases on another property owned by the sponsor. The sponsor is a long-time client of ValueXpress, as this transaction was the third loan provided by ValueXpress since 1999. “We were pleased to be able to provide this financing given the declining performance in the hotel sector and general aversion to hotel loans, particularly without any SBA support,” said Jim Brett, who underwrote the loan for ValueXpress.

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This entry was posted in Commercial Lending, Commercial Real Estate Loans, Owner-Occupied Loans, Owner-User Loans, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

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