ValueXpress arranged financing for the Hampton Inn – Linden, a 149-room interior corridor limited service hotel constructed in 2003. Located in Linden, Union County, 3 miles east of the Garden State Parkway and 3 miles west of the New Jersey Turnpike in northern New Jersey, the property is franchised by Hilton Corporation under its Hampton Inn brand.
The property is owned by Ghanshyam Hospitality, LLC. The sponsor of Ghanshyam Hospitality, LLC has now completed three transactions with ValueXpress and its affiliate, Country Bank. The Hampton transaction was structured with a 5-year term and a 25-year amortization schedule. The non-recourse loan carries a fixed-rate below 6%. The transaction allowed the borrower to capture a discount on the loan payoff as the prior loan had been sold to a hedge fund despite perfect payment history.
“The sponsor is one of our best clients,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “His team is organized, smart, and can move quickly to seize an opportunity. Our job at ValueXpress is to be there for the sponsor’s financing needs, and when he says jump, we ask, “how high?”
“Our array of products has solved each of the most recent financing needs, a non-recourse bridge loan on a large hotel at Newark Airport, a recourse bank loan to purchase a foreclosed hotel in Long Island City and now this transaction, which replaces a recourse loan with a non-recourse structure,” Sneden said.