ValueXpress has arranged a $6-million CMBS conduit loan for the refinance of a three-story Hampton Inn hotel constructed in 2008 located in Clute/Lake Jackson, Texas. The property was constructed to latest Hampton Inn brand standards. Creating a modernized look, these new construction standards include contemporary bathrooms with a clean, white design, as well as movable desks and ottomans. Power outlets are repositioned for staying connected, and rooms offer streamlined case goods like a mini-fridge and wire baskets for storage.
The hotel is located on Highway 288/332 within easy reach of Surfside Beach and Quintana Beach. Discover Lake Jackson Historical Museum, the Center for the Arts & Sciences, The Clarion Music Performance Center and Dow Centennial Park are all within a 15-minute drive. The hotel is close to local corporations, including BASF, Dow Chemical Company, Freeport, LNG Plants, Dole, Perstorp and Shintech.
“This is the first closing of a portfolio of 12 hotels owned by this group,” explained Jay Bhakta, a Senior Loan Originator at the ValueXpress Jackson, Mississippi office and 15-year ValueXpress veteran. “They are being underwritten and closed in batches of 4-5 hotels at a time so as to not overwhelm these hard-working owner-operators. I have now been in Corpus Christi, Portland, Rockport and Clute for nearly three weeks assisting in property diligence. The owners are very grateful for the help.”
The loan provides for a 10-year term with a 20-year amortization schedule and provided a substantial return of excess equity to ownership. Financing was provided by an active CMBS conduit lender that has an ongoing relationship with ValueXpress to arrange additional CMBS conduit loans.