ValueXpress Arranges an $8.7-Million CMBS Conduit Loan for the Refinance of a 74-Room Comfort Inn & Suites in Beaumont, TX and a 56-Room LaQuinta Inn & Suites in Lumberton, NC

ValueXpress has arranged an $8.7-million CMBS conduit loan for the refinance of a four-story Comfort Inn & Suites hotel constructed in 2008 and a four-story LaQuinta Inn and Suites constructed in 2009. The loan provided an opportunity for the sponsor to pay off three loans, two of which were held by Wells Fargo and Cathy Bank and the third held by the SBA. The new loan features a lower monthly payment based on its lower interest rate (sub-5%) and longer amortization period (25 years), even though the transaction provided a $1.2-million equity return to the sponsor.

The LaQuinta property is located adjacent to I-95, the major interstate highway that stretches from Maine to Florida along the East Coast. North Carolina and Lumberton are approximately midway between New York and Florida, and the property provides for substantial leisure demand from interstate travelers during the summer months.

The Comfort Inn & Suites in Beaumont serves an entirely different market demand. Beaumont is home to some of the largest oil refineries in North America. As such, the hotel provides for corporate demand related to oil refining. With the substantial decline in the price of oil, refineries are operating at nearly 100% capacity to provide for the increased driving demand in the United States as a result of lower gasoline prices.

 

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This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Mortgage-Backed Securities, 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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