$18M Refinancing Earmarked for Residence Inn Near Virginia Tech
Newport Hospitality Group, a Williamsburg, Va.-based hospitality management company, has received an $18.3 million loan to refinance Residence Inn Blacksburg-University, a 126-key hotel in Blacksburg, Va.
The Marriott-branded extended-stay hotel is across the street from Virginia Tech University. Newport Hospitality Group developed the hotel in 2017.
Greysteel, a Dallas capital markets firm with an office in Bethesda, Md., facilitated a five-year, fixed-rate loan through a regional bank, after receiving seven term sheets from various lenders to create a competitive offer.
The loan carries a rate of 6.13 percent interest on a 25-year amortization.
“The property was perfectly situated next to Virginia Tech and had shown an increased performance year over year since 2020,” Stephen Haase, a director at Greysteel who secured the loan, told Commercial Observer. “The new lender saw the opportunity to grow their relationship with the borrower and provided a very attractive rate to win their business.”
The original loan, which matured in early 2024, was used to finance the construction of the hotel and had a balance of just under $17.9 million when it was paid off this month.
“The hospitality industry has recovered rapidly in the past few years, and this asset was able to show consistent year-over-year growth in its performance to achieve this accretive loan structure,” Haase said. “The hospitality industry continues to be an attractive area for lenders, which was shown in the quantity of interest brought in on this transaction.”
Keith Loria can be reached at Kloria@commercialobserver.com.