Holiday Inn Express & Suites

Location: Emporia, Virginia

Size: $4,500,000

Challenge: Cash Out

Type: Permanent Loan

This client needed to refinance a maturing CMBS loan. He had already been approached by the loan servicer, who falsely advertised themselves as his "lender." The servicer was not in fact a lender, but they did send out his hotel financials to 3 actual lenders to get quotes. What the servicer offered was not appealing, so we were hired to run a real loan process. The hotel had recently undergone a minor Formula Blue PIP and only had 7 years remaining on the franchise license. By marketing the opportunity to 25+ lenders, we were able to obtain $500,000 more of proceeds at an interest rate that was 50 bps less than the servicer's quote, which resulted in over $1.5 million of cash out to the client without having to reserve any funds for the future PIP in 7 years.