ValueXpress obtained an $875,000 first-mortgage loan commitment on a 2-story, 40-room exterior corridor limited-service hotel built in 1987 on a 1.4-acre site in Canton, Madison County, MS. The property is franchised as an Americas Best Value Inn budget branded hotel. The property is located adjacent to I-55 at the intersection of Highway 22. The area is developed primarily with restaurants and other hospitality properties. The property’s business is heavily influenced by a 2-million-square-foot Nissan automobile manufacturing plant that was completed in 2003 and is located two miles south of the property. Additional demand arises from a myriad of suppliers to the plant in the area. The property features 23 double rooms and 17 king rooms.
“This transaction was very challenging as few lenders are interested in small, budget brand, exterior corridor hotels over 10 years old,” commented Jay Bhakta, senior loan originator at the ValueXpress Jackson, MS office. “However, this property is owned by a good client of mine who has never been late on a payment in his life, and with a nationwide 7(a) lending relationship that likes smaller, good performing properties despite age, flag and exterior corridor configuration, I was able to secure a commitment with a closing scheduled for the end of July.”