ValueXpress Obtains $9.5-Million CMBS Conduit Loan for the Refinance of Two Hotels in Corpus Christi, TX

ValueXpress has arranged a $9.5-million CMBS conduit loan for the refinance of a Candlewood Suites and LaQuinta Inn & Suites, both located in Corpus Christi, Texas. The Candlewood Suites is a 74-room extended-stay hotel constructed in 2007 and recently upgraded to current brand standards. The LaQuinta Inn & Suites was constructed in 2006.

The properties are located in proximity to the booming oil refineries operating in Corpus Christi. Despite a concern regarding the drop in oil prices, Corpus Christi refineries are running at 92% of capacity, while the Texas Gulf Coast is operating at 94.4%. These levels are near the peaks experienced in 2006, before the financial crisis, and they suggest that expansions and other project to at least marginally increase production will be pursued. In addition, dollars will be spent to ensure refineries stay on line as it has also been reported that refining profitability is up. These elements have combined to keep hotel demand in Corpus Christi growing despite the decline in oil prices.

The loan provides for a 10-year term with a 20-year amortization schedule and is non-recourse. The loan provided for cash-out proceeds, allowing the sponsor to recover equity from the subject hotel to invest in other projects. Financing was provided by an active CMBS conduit lender that has an ongoing relationship with ValueXpress to arrange additional CMBS conduit loans.

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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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