ValueXpress obtained a $5-million first-mortgage loan commitment with its New York banking partner, Country Bank, from the Small Business Administration for the construction of an 85-room Holiday Inn Express hotel at 500 Exterior Street, Bronx, N.Y. The property is located less than one mile from Yankee Stadium. In addition, the property is located adjacent to the newly developed Gateway Center at Bronx Terminal Market; tenants include BJ’s Wholesale Club, Home Depot, Target, Staples, Bed Bath & Beyond, Best Buy, Marshalls, Applebee’s, Babies “R” Us, Toys “R” Us, and Raymour & Flanigan.
The property is within walking distance to the Number 4 and Number 2 subway lines, proving a 5-minute subway ride to Central Park or 10 minutes to Midtown Manhattan. The hotel will provide an extraordinary economic alternative for tourists versus Manhattan room rates, as the anticipated rate of $150/night will be half of Midtown Manhattan rates.
The 11-story project will be constructed to Holiday Inn Express prototype brand standards. Amenities will include complimentary breakfast, meeting room, fitness center, business center, parking facility, in-room safe, wireless Internet access and 42″ LCD TVs.
“The transaction was our sixth loan to this hotel group,” said Michael D. Sneden, Executive Vice President of ValueXpress. “The group has been enormously successful in the construction and operation of franchised and independent limited-service hotels in the boroughs surrounding Manhattan. Its portfolio generates in excess of $2 million per year of cash flow after debt service.”
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