Aries Capital announced that Rushi Shah, senior vice president, from the company’s Chicago office, has closed an $8.9 million loan for the Holiday Inn Express of Baytown, Texas on behalf of Pride Management.
The property, operational since April 2014, is located at 7515 Garth Road across the bay from Houston and along the Gulf Coast.
Having completed a successful loan for a hotel development in Victoria, Texas earlier this year, Pride Management again sought Aries Capital’s assistance to secure a loan for its Baytown property. Aries Capital was able to secure a new CMBS loan for the Borrower to replace the property’s existing full recourse, bank construction loan. The permanent, non-recourse, 10-year loan was arranged through the same CMBS lender Aries utilized for the Borrower’s previous loan.
“Not only did the market change between the time we secured and closed the loan, because the hotel was newly constructed, it only had four-months of operating history, typically insufficient when trying to secure a CMBS loan,” said Shah. “However, despite the changing market, Aries was able to negotiate with the lender to maintain the original terms by demonstrating the strength of our deal through qualified market research. As for the minimal operating history, given our experience with this lender along with the Borrower’s demonstrated success in the hotel market, we were able to overcome the challenge and secure a new CMBS loan with favorable terms.”
