ValueXpress has arranged a $5.2-million CMBS conduit loan for the refinance of a three-story Holiday Inn Express hotel constructed in 2006. The hotel is located in Burleson, Texas, a suburb of Fort Worth. The sponsor will utilize a portion of the cash-out loan proceeds to complete a Property Improvement Plan (PIP) in conjunction with a 10-year franchise license renewal. The property is a Quality Excellence Award winner, a designation that honors hotels that have maintained high standards in product quality, hotel operations and customer satisfaction.
Amenities include a meeting room, exercise room, complimentary breakfast, high-speed internet access, a business center, hot and cold breakfast and an indoor swimming pool. In addition, the property provides a complimentary guest reception Monday through Thursday at which it serves a light selection of food, beer and wine.
“The transaction was challenging as we analyzed the property operating statements and noticed many accounting entries that did not make sense,” noted Jim Brett, head of underwriting at ValueXpress. “We alerted the sponsor, who determined that the accounting professional recording entries was not using the correct expense categories. The person was fired.”
A new accountant needed to be hired and the books corrected in time to meet an SBA loan payoff on the third Thursday of the month. Once the new accountant was hired, ValueXpress walked the accountant through the format required to close the loan. The accountant worked tirelessly to get it done, and the loan closed before the SBA deadline.