ValueXpress Obtains $4.7-Million CMBS Conduit Loan to Refi a $2.5-Million SBA 7(a) It Originated in 2010

ValueXpress obtained a $4.7-million CMBS conduit loan to refinance a $2.5-million SBA 7(a) loan it had originated in 2012, providing nearly $2 million in cash-out proceeds to the owner.

The property is a 2-story, 64-room limited-service franchised hotel located in Houston, Texas operating under the flag of Comfort Suites. The property was constructed in 2000. The building, situated on State Highway 249 next to Vintage Park Shopping Village, has several restaurants and retail venues in the neighborhood. The hotel offers a quiet suburban location across the street from Hewlett-Packard USA and Lone Star College-University Park. Willowbrook Mall, St. Luke’s Episcopal Hospital, Methodist Hospital and Sam Houston Race Park are in proximity to the hotel.

The 2012 financing provided funds to complete a substantial PIP and franchise renewal, which resulted in significant increases in ADR, occupancy and revenue. The resulting increase in cash flow increased the value of the property, allowing the owner to extract cash equity to invest in a new project.

“This is a good repeat client of mine who had already completed a CMBS loan on another property,” commented Jay Bhakta, a senior loan originator at the ValueXpress Jackson, Mississippi office. “One of the best benefits of CMBS conduit loans is unrestricted cash out, and this transaction was a prime example.”

This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, SBA 7(a), SBA Loans, The Banker's Mortgage Conduit, Valuexpress and tagged , , , , , . Bookmark the permalink.

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