ValueXpress closed on a $5.15-million first-mortgage loan commitment from its New York banking partner, Country Bank, for the purchase of an independent limited service hotel in the Long Island City section of Queens, NY. The property is a 3-story, interior corridor, 78-room, limited-service, non-franchised hotel constructed in 2001. Located 5 miles from LaGuardia Airport and 13 miles from John F. Kennedy International Airport, the hotel is in the heart of New York’s Long Island City. The property is minutes from Manhattan, across the Queensboro Bridge, providing access to Midtown Manhattan’s many attractions (including Grand Central, Bryant Park and Times Square). Citicorp Field and other New York City (NYC) destinations can be accessed by the NYC subway system located a few short blocks from the hotel.
“This deal follows a transaction that we closed a couple of months ago for this sponsor,” said Michael D. Sneden, Executive Vice President at ValueXpress. “The sponsor was impressed with the speed, efficiency and knowledge ValueXpress staff brought to the transaction. The prior deal had a critical time element and the sponsor had great financial exposure if the deal did not close. But it did, and on schedule,” said Sneden.
The property was purchased out of foreclosure and is underperforming. Country Bank was comfortable with the loan because the sponsor has an excellent track record for turning around underperforming hospitality properties by implementing better marketing plans, expense control and investment in capital improvements. The sponsor is currently implementing a $250,000 capital improvement plan.