ValueXpress Arranges $5.5-Million CMBS Conduit Loan for the Refinance of a 91-Room Best Western Hotel Located in Yuba City, CA

ValueXpress has arranged a $5,500,000 CMBS conduit loan for the refinance of a 91-room Best Western hotel located in Yuba City, California. The property is a two-story exterior-corridor hotel that was constructed in 1989. The loan provided for significant cash-out equity return to the owner.

The property is located in northern California, approximately 40 miles north of Sacramento. The hotel is situated in central Yuba City adjacent to Highway 99, near the Sutter Buttes mountain range. Yuba City provides for many leisure activities, including gold mining in nearby historic “gold-rush” communities as well as hiking and camping in Sutter Buttes. In addition, the property provides accommodation for business guests visiting local companies in proximity to the hotel, including Sunsweet Growers, Sierra Gold Nurseries, Orchard Machinery Corporation, Valley Truck and Tractor, John Deere and Beale Air Force Base.

The property provides guests with an extensive amenities package that includes an outdoor pool with hot tub, complimentary hot breakfast, fitness center, business center and high speed internet. Each room has a microwave/refrigerator, coffee/tea maker and a desk/work area.

“The transaction was challenging in that the CMBS market does not favor exterior-corridor hotels,” commented Gary Unkel, Senior Loan Originator at ValueXpress who handled the transaction. “In fact, I can count on one hand the amount of exterior corridor limited-service hotels in CMBS that are not located on a beach. Add a big cash-out to the mix and I really had my hands full, but the property performance is exceptional and I was able to push the project through the credit approval process.”

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This entry was posted in CMBS Conduit Loans, Commercial Lending, 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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