ValueXpress has arranged a $3.5-million CMBS conduit loan for the refinance of a three-story Holiday Inn Express hotel constructed in 2006. The hotel is located in Dayton, Tennessee, 40 miles northeast of Chattanooga. The sponsor purchased the property in 2010 after a period of mismanagement by prior owners. The sponsor completed a Property Improvement Plan (PIP) totaling in excess of $600,000 to bring the property into compliance with Holiday Inn Express brand standards. On completion of the PIP and under new owner-management, the property is thriving. Room revenue grew from under $1.0 million annually to over $1.4 million in 2014.
The city of Dayton is a small manufacturing center also known for its bass fishing in Chickamauga Lake, a 58-mile long reservoir along the Tennessee River. Dayton has hosted several major fishing tournaments at Chickamauga Lake, including the 2014 Bassmaster BASSfest, American Bass Anglers Weekend Series, Heartland Anglers Classic and the 2013 Walmart FLW Tour. The hotel is located near Bryan College, Oxford Graduate School, and less than 30 minutes from the TVA-Sequoyah Nuclear Plant and the Watts Bar Plant.
“The transaction allowed the sponsor to recover equity invested in the PIP as well as pay off an SBA loan, creating new eligibility to obtain another SBA loan for a future project,” commented Jay Bhakta, Senior Loan Originator at ValueXpress who originated the loan.