Walker & Dunlop Completes $15M Loan for Extended Stay Hotel Portfolio
- Oct 28, 2016
By Ioana Moldovan
Columbus—Walker & Dunlop, Inc. has recently closed a $15.5 million loan for the acquisition of four Value Place/WoodSpring Suites Hotels, on behalf of Sandpiper Hospitality. The portfolio of extended stay properties consists of the 122- key WoodSpring Suites Easton and 124-key Value Place Worthington located in Columbus, Ohio, as well as the 119-key Value Place Fairfield in Cincinnati, Ohio and 124-key Value Place Fort Wayne in Indiana.
The loan was closed through Walker & Dunlop’s wholly-owned subsidiary, Walker & Dunlop Commercial Property Funding, LLC (WDCPF). The company used a three-year, interest-only bridge loan to allow Sandpiper Hospitality to complete the acquisition while the properties are stabilized. Managing Director Stephen Farnsworth and Managing Director & Head of Originations, Geoff Smith led the WDCPF team.
“WDCPF is pleased to have been able to navigate a very challenging lending market for nonstabilized, extended stay hotels. The strength of the Sponsor, an experienced owner of Value Place/WoodSpring Suites properties, was a major contributor to the success of this execution,” said Smith in prepared remarks.
The Value Place franchise is currently in the process of rebranding all of its properties to the new WoodSpring Suites, which is expected to expand the network and customer base as well as drive RevPAR growth. The four-asset portfolio includes two recently built hotels, which have not achieved stabilization. In addition, three of the properties will go through the rebranding process in the fourth quarter of 2016. Hotel guests can choose from three layout options that include a studio, a studio with a sleeper sofa, double and queen bed. Guest room amenities consist of a kitchen with a refrigerator, microwave, and two-burner stovetop, flat panel television with cable and premium movie channels and Wi-Fi internet. Additionally, hotel amenities offer 24/7 guest laundry facilities, vending machines and interior corridors with key card access.
To date, Walker & Dunlop has financed or arranged the financing for eleven Value Place/WoodSpring Suites for Sandpiper Hospitality.
Image courtesy of Value Place/WoodSpring Suites Hotels