ValueXpress Arranges $21-Million CMBS Conduit Loan for the Refinance of a Hotel Portfolio in Lubbock, TX

ValueXpress has arranged a $21-million CMBS conduit loan for the refinance of four limited-service hotels located in Lubbock, Texas. The properties are the 84-room Holiday Inn Express-Lubbock/Southwest constructed in 2010, the 77-room Holiday Inn Express-Lubbock/South constructed in 2013, the 66-room Comfort Inn & Suites-Lubbock constructed in 2001 and the 75-room Super 8-Lubbock built in 2006.

“The transaction was challenging as one of the properties was a budget brand, typically not suitable for CMBS,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “By combining all the hotel assets in one loan, the strength of the other hotel assets allowed the budget hotel to be included in the financing.”

The properties are owned by a local businessman who is one of the largest distributors of packaged terminal air-conditioning units (PTAC) in the United States. The company expects to ship over 60,000 PTAC units in 2014 from its Lubbock headquarters and five warehouse/regional locations nationwide. The company has grown exponentially since acquiring the Sanyo brand and renaming the product line “PremAire.”

“The sponsor works 12 hours a day between the hospitality business and the PTAC business so we knew we had to apply the ‘ValueXpress model’ to get the deals underwritten and closed,” commented Jay Bhakta, a Senior Loan Originator at the ValueXpress Jackson, Mississippi office and 15-year ValueXpress veteran. “Mike and I headed out to Lubbock for an entire week to help staff complete diligence. The sponsor was very appreciative of our help and support.”

 

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This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, 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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