ValueXpress Obtains a $9.1-Million CMBS Conduit Loan for a Holiday Inn & Suites at Phoenix Sky Harbor Airport

ValueXpress obtained a $9.1-million CMBS conduit loan secured by a 114-room full-service hotel that is being operated as a Holiday Inn & Suites. The property offers one restaurant and lounge, 3,000 square feet of meeting space, an outdoor pool and whirlpool, an exercise room, a business center, and a typical complement of back-of-the-house facilities. The subject property is located along S. 48th Street, just west of the Hohokam Expressway, north of Interstate 10, less than one mile southwest of the Phoenix Sky Harbor International Airport and roughly 7.8 miles southeast of the Phoenix Convention Center.

“The transaction was highly beneficial for the sponsor as the new loan provided significant return of equity to the sponsor without an increase in loan payment,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “This occurred because the CMBS conduit loan rate in the upper 4% area was significantly lower than the rate on the existing loan that was paying on a 20-year amortization schedule versus 25 years on the CMBS conduit loan.”

“The loan required our usual accounting expertise as the financial statements for the hotel were not in the Uniform System of Hotel Accounts,” said Jim Brett, head of underwriting at ValueXpress. “Working closely with the property bookkeeper and outside accountant, we were able to convert the accounts into USHA while maintaining a very quick closing timeline.”

 

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

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