ValueXpress originated $200 million of CMBS conduit loans in 2013. The loans were secured by multifamily, retail, office, self-storage and hospitality properties. The loans were included in nine CMBS issues sold in 2013 with a total principal balance in excess of $10 billion. Approximately 50% of the loans originated by ValueXpress were secured by hospitality properties.
Many of the hotel loans were to members of the Asian-American Hotel Owners Association (AAHOA), a national hotelier organization of which ValueXpress is a preferred vendor for hotel financing. Over 25% of the loans were originated in Texas, reflecting the growth that state is experiencing due to the exploration and extraction of gas and oil. The loans provided a combined $42 million in unrestricted cash-out proceeds to the sponsors for other investments.
“The name of the game in 2013 was ‘unrestricted cash-out,’ “ said Michael D. Sneden, Executive Vice President of ValueXpress. “No other commercial loan product for income-producing properties can compete with CMBS conduit loans when cash-out proceeds are needed by the sponsor.”