CUERO, TX–Aries Capital has closed on financing for a new 77-unit, Holiday Inn Express to be built here. The hotel is located within the Eagle Ford Shale area of Southern Texas.
Leonard Smith, SVP, from the firm’s Houston office handled the arrangement which amounts to $4.7 million.
“We chose to work with Aries Capital because of their knowledge of the hotel industry as well as their ability to secure financing for challenging circumstances,” said Anil Verma of Avalon, LLC and the borrower in the loan transaction. “In this particular instance Leonard not only had to find a lender willing to provide a loan for new construction, but once the lenders were sourced, he then also had to coordinate between SBA loan provider as well as the Community Development Council (CDC) to ensure the requirements and deadlines were met.”
In this transaction, the borrower received a $4.7 million construction loan with an 18-month, fixed rate term at 6% interest. The permanent loan features a five-year arm at an interest rate of Wall Street prime plus 2-1/2 percent with a floor of 6%. The transaction was funded through an SBA 504 loan and the CDC.
“After sourcing 15-20 different lenders, we secured financing through an SBA lender in Louisiana,” said Smith of Aries Capital. “The difficulty of this loan was due to the need to coordinate multiple involved parties and many moving parties. We were up to the challenge and able to secure the right lenders, handle their unique demands and timelines, work through franchise agreement issues, and ultimately deliver the financing the borrower needed.”
Holiday Inn Express is a brand of InterContinental Hotel Group which operates 4,400 hotels in over 100 countries. The 77-unit hotel will service the growing Eagle Ford Shale area, a hydrocarbon producing formation of significant importance due to its capability of producing both gas and oil.
“The Texas market is strong with signs of new construction and continued growth,” added Smith. “We are happy to have provided financing which will enable the borrower to contribute to the growth of our local economy.”
Aries Capital, (www.ariescapital.com) is a national full service commercial mortgage and real estate investment banking firm with offices in Chicago, Houston, and Phoenix. Since 1991, Aries and its affiliates have arranged and/or directly funded over $4 billion in debt and equity for office, retail, multifamily, healthcare, hotel/lodging and special-purpose properties.