ValueXpress Obtains USDA B&I Loan Commitment for the Refinancing of a 58-Room Limited-Service Hotel in Ithaca, NY

ValueXpress obtained a $3,600,000 USDA loan guarantee (80% of the loan amount) to support a $4,500,000 refinancing of a 58-room limited-service hotel located in Ithaca, New York. The loan will refinance a first mortgage held by Ares Capital, and a second mortgage held by the bankrupt estate of Business Loan Center/Ciena Capital that in combination was utilized to construct a Country Inn & Suites hotel. The property is a two-story, 58-room (53 suites and 5 rooms) limited-service hotel (plus one apartment) completed in 2008 and situated on a 2.74± acre site in Ithaca, Tompkins County, NY operated under a Country Inn & Suites franchise. Garuda Hotels acquired the hotel site in June 2005. The property is in excellent condition and derives significant room demand from its proximity to Ithaca College, which is located less than a half mile from the hotel. In addition, supplemental demand is derived from its proximity to Cornell University and leisure demand is found in the spring, summer and fall related to attractions in and around Ithaca. The loan was processed by Karen McDonnell, Business Programs Specialist with the New York USDA. “Karen was terrific,” said Michael D. Sneden, Executive Vice President at ValueXpress. “She was fast, efficient and delivered exactly what we applied for, and she recommended some very good ideas on how to structure the loan. We are actively seeking more USDA loans in New York to have more opportunities to work with Karen.”

This entry was posted in Michael D. Sneden, The Banker's Mortgage Conduit, Valuexpress. Bookmark the permalink.

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