ValueXpress arranged financing for a select-service interior-corridor hotel constructed in 2009 located in Morgantown, West Virginia. The transaction was structured with a 10-year, fixed-rate term based on a 25-year amortization schedule. The property, owned by Mountain West Hospitality LLC, is located in the city of Morgantown. The Hilton Garden – Morgantown is located two miles from I-79 and I-68, five miles south of the Pennsylvania border. The property, part of the Suncrest Towne Center retail center, is located at the intersection of State Route 705 and Stewartstown Road in close proximity to West Virginia University’s main campus and centrally located within the market.
The transaction was complicated by a property bankruptcy, contractor liens in excess of $1.5 million from cost overruns on the original construction and litigation involving the sponsor and a large commercial bank related to another asset owned by the sponsor.
“This transaction had it all,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “It’s not uncommon to have some hair on a CMBS deal, but these three major issues took hard work, creative thinking and perseverance to solve to be able to complete this transaction.”
At closing, the bankruptcy was cleared, the contractors paid (most paid without discount) and the sponsor settled the bank litigation.