ValueXpress has arranged a $7.25-million CMBS conduit loan for the refinance of a three-story Quality Suites hotel constructed in 1990 and renovated in 2015-2017. The hotel is located in the Buckhead Village section of Atlanta, Georgia.
Amenities include a meeting room, exercise room, complimentary breakfast, high-speed internet access, a business center, hot and cold breakfast and an outdoor swimming pool. All rooms feature kitchens with refrigerators and microwaves, free WiFi, free wired Internet and flat-screen TVs with digital channels. Living rooms, coffee makers, and free local calls are among the other amenities available to guests.
The property is located at Pharr Road, adjacent to Frankie Allen Park, in Buckhead Village. The property is proximate to Underground Atlanta, Philips Arena, Emory University, Georgia World Congress Center, Georgia Institute of Technology, Atlanta Civic Center, Buckhead Crossing, Emory University Hospital and the Georgia Dome.
“The transaction was challenging in that the loan amount provided for a substantial return of equity to the sponsor. Normally, return of equity is not an issue in CMBS conduit loans; however, the loan amount in this case exceeded the cost basis for the property,” noted Michael D. Sneden, Executive Vice President at ValueXpress. “We were able to mitigate the concern based on the high level of property performance and outstanding location.”
In addition, the property is exterior corridor. “Exterior corridor hotels are not desired in CMBS conduit loans, but we were able to mitigate this concern as well,” commented Jim Brett, head of underwriting at ValueXpress.