ValueXpress has arranged a $7.5-million CMBS conduit loan for the refinance of a five-story Best Western hotel located at Liberty International Airport in Newark, N.J. after overcoming a title defect that delayed the transaction for a year.
The Best Western Plus Newark Airport offers a daily complimentary hot buffet breakfast, complimentary wireless Internet and an exercise facility. A convenient 24-hour business center and a 24-hour snack shop are located on site. A recently renovated on-site cocktail lounge offers a wide array of spirits and food choices, allowing travelers to unwind after their travels.
A small stream bed that had long ago been filled in by the State of New Jersey was located on the hotel site. Our sponsor built a hotel on top in 2001. But it seems like the State of New Jersey still owned the “stream” that runs under the hotel (about 9% of the total land area). Since our sponsor did not own all of the land, the sponsor could not get title insurance. After a nine-month process, the state of New Jersey granted the sponsor the right to acquire the land, allowing for the title to be insured.
“We kept up all the financial data during the last year to allow the transaction to quickly move to close once the state granted the purchase right to the sponsor,” commented Michael D. Sneden, Executive Vice President at ValueXpress.