Holiday Inn Developer Secures $4M Loan

CUERO, TX- Aries Capital, working on behalf of sponsor Avalon LLC, has secured a $4.7 million loan for development of a 77-unit Holiday Inn Express within south Texas’ Eagle Ford Shale Area. The borrower received a construction loan with an 18-month, fixed rate term at 6% interest as well as a permanent loan with a five-year ARM at an interest rate of Wall Street prime, plus 2-1/2% with a floor of 6%.

The transaction was funded through an U.S. Small Business Administration 504 loan and the Community Development Council. “After sourcing 15-20 different lenders, we secured financing through an SBA lender in Louisiana,” says senior vice president Leonard Smith of Aries Capital’s Houston office. “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.”