ValueXpress has arranged a $4-million CMBS conduit loan for the refinance of a Red Roof Inn constructed in 2008 and a $3.6-million loan for a Days Inn hotel constructed in 1978 (renovated in 2009-2012); both are located in Laredo, Texas.
The Red Roof – Laredo is a 3-story, 83-room interior-corridor property that was constructed by the sponsors to Red Roof Inn brand standards. The property offers an outdoor pool, outdoor barbeque and picnic area, lobby workstation, guest laundry facility and vending areas.
The Days Inn – Laredo is a 2-story, 126-room interior-corridor property that was purchased and gut-renovated by the sponsors. The property offers an outdoor pool, exercise room, outdoor barbeque and picnic area, game room, lobby workstation, guest laundry facilities and vending areas. In addition, the property features a full-service restaurant.
The Days Inn property is located on Interstate 35, which extends to San Antonio to the north and Nuevo Laredo, Mexico to the south. The neighborhood is anchored by Mall Del Norte, a large shopping mall, as well as restaurants, hotels and other retail shopping centers along the primary thoroughfares; residential areas are located along the secondary roadways.
The Red Roof property is located on the southeast side of Laredo. The property is located near a busy intersection and benefits from good visibility from within its local neighborhood.
“The Days Inn transaction was challenging,” commented Jay Bhakta, a Senior Loan Originator at the ValueXpress Jackson, Mississippi office and 15-year ValueXpress veteran. “There are no Days Inn hotels in CMBS issues since the market restarted in 2010. We carefully structured the deal with a 15-year amortization and a low LTV and got it approved.”