The portfolio expansion will be fueled in part by $25-millionequity revolver financing, which was recently secured on behalf ofValue Place by New York City-based AFC Realty Capital. Thefacility, which was placed with an institutional private equityfund, gives the developer the ability to drive at least $250million in construction loans, says Paul Fried, an AFCprincipal.

Fried adds that the equity revolver facility could fund up to 75properties over the next several years. It also offers Value Placethe flexibility to simultaneously build and operate many projectsacross many markets. "The challenge was to find an institutionalpartner that would provide capital for construction, acquisition,development and working capital funding for relatively smallproperties costing under $5 million each in mostly secondarylocations across a number of different states, " he says.

Bruce says that the "young and growing" company, which wasfounded by Jack DeBoer, has the commitment of its investors tobuild 550 Value Place extended-stay hotels at a cost of about $2billion over the next several years. DeBoer, who is credited withcreating the extended-stay concept, previously launched ResidenceInn, Summerfield Suites and Candlewood Suites. Value Place offersoccupancies as short as a week at rates below most extended-stayhotels. The studio rooms offer apartment-like features, such asfull kitchenette.