ValueXpress Arranges $3.2-Million CMBS Conduit Loan for the Refinance of a 55-Room Best Western Hotel in Lake Charles, LA

ValueXpress has arranged a $3.2-million CMBS conduit loan for the refinance of the Best Western Bayou Inn & Suites hotel that was constructed in 2000. The two-story property is located off Interstate 10 at Exit 33 in Lake Charles, Louisiana.

Lake Charles has grown with the onset of the petrochemical refining industries. Several petrochemical plants and an oil refinery are located nearby along the Calcasieu Ship Channel. Turner Industries, Axiall, and Citgo each employ over a thousand engineers. The Trunkline LNG terminal, immediately southwest of Lake Charles, is one of the few liquified natural gas terminals in the United States. In addition, the local economy is fueled by the gaming, manufacturing and aviation maintenance industries. Lake Charles has the biggest casino market in the state of Louisiana. The L’Auberge du Lac Casino Resort is a 26-story hotel in Lake Charles. It has nearly 1,000 guest rooms as well as a casino, golf course, spa and meeting center. A second casino, the Golden Nugget Lake Charles, opened in late 2014 next to L’Auberge du Lac. The casino resort has more than 740 guest rooms, a casino, golf course, meeting space, retail corridor and a private beach and marina.

The property was previously operated under a different franchise brand. The owner struggled and the property was foreclosed. The sponsors purchased the property from the bank and converted the hotel to a Best Western. In conjunction with the hotel conversion to the Best Western brand affiliation, a Property Improvement Plan was completed. Work included new landscaping, pool improvements, additional exterior lighting, new lobby seating, renovation of public restrooms and new stairway flooring. In addition, rooms were fitted with new carpet, bath tile, lighting and mirrors.

The new CMBS conduit loan provides for a 10-year term with a 25-year amortization schedule and is non-recourse. The loan provided for cash-out proceeds, allowing the sponsor to recover excess equity resulting from the cash flow improvements under the Best Western franchise. Financing was provided by an active CMBS conduit lender that has an ongoing relationship with ValueXpress to arrange additional CMBS conduit loans.

This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, Valuexpress and tagged , , , , , , . Bookmark the permalink.

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