ValueXpress has arranged a $5,950,000 CMBS conduit loan for the refinance of a 75-room Holiday Inn Express and Suites in Guymon, Oklahoma. The property is a 4-story hotel that was constructed in 2009. The loan provided for cash-out proceeds for a Property Improvement Plan (PIP) in conjunction with a 15-year franchise license extension. In addition, the loan provided significant cash equity return to the owners.
The property is located in the northwest section of the state of Oklahoma, approximately 250 miles from Oklahoma City and 120 miles from Amarillo, Texas. Guymon is the county seat for Texas County, Oklahoma. The local economy is dominated by farming, cattle and pork, but it had grown recently through development of wind energy production and natural gas transmission.
The hotel is in proximity to major employers, including Seaboard Foods, Hitch Enterprises, Guymon Extracts, Mathis Oil Company and K & J Trucking. The hotel features a business center, free wireless internet, an indoor swimming pool, exercise room and a free full hot breakfast buffet.
“The transaction was challenging in that the CMBS market has become more conservative toward loans with large cash-out in small markets. We were able to build a strong case around sponsorship, as the subject property has been self-managed by one of the principal owners for its entire 10-year life and the owner lives locally,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “This carried a lot of weight during the loan approval process.”