ValueXpress Closes $5-Million SBA 7(a) Loan Secured by an 81-Room Comfort Inn in Brooklyn, NY

ValueXpress closed on a $5-million first-mortgage loan commitment from its New York banking partner, Country Bank, for the purchase of a Comfort Inn limited service hotel in Brooklyn, NY.  The property securing the loan is a newly constructed 4-story, 81-room limited-service hotel that opened in August 2011. The site lies in close proximity to the Brooklyn Passenger Ship Cruise Terminal and immediately adjacent to the Battery Tunnel leading into Manhattan. The property is 5 minutes from downtown Manhattan, within 2-5 miles of all major bridges and tunnels between Manhattan and New Jersey and has quick access to all major area airports. The hotel features 46 king rooms and 35 double-bed rooms. The hotel will have on-site guest parking, an amenity not available at competing hotels in the area. The property is subject to a ground lease that has a term of 48 years.

The loan was 90% guaranteed by the SBA under its 7(a) loan program.  The loan was approved in 2010 while the property was under construction under President Obama’s Jobs Act, which waived the SBA fees on the transaction and provided a higher guarantee limit versus the 75% guarantee that is available today.

This entry was posted in Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, Owner-Occupied Loans, SBA, SBA 7(a), SBA Loan Processing, SBA Loans, Valuexpress and tagged , , . Bookmark the permalink.

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