Walker & Dunlop Closes $15.5 Million Loan for Extended Stay Hotel Portfolio
Bethesda, Maryland – October 25, 2016
Walker & Dunlop, Inc. (NYSE: WD) announced today it closed a $15.5 million loan for the acquisition of four extended stay properties in Ohio and Indiana by repeat borrower Sandpiper Hospitality. The loan was closed through Walker & Dunlop’s wholly-owned subsidiary, Walker & Dunlop Commercial Property Funding, LLC (WDCPF). To date, Walker & Dunlop has financed or arranged the financing for eleven Value Place/WoodSpring Suites for Sandpiper Hospitality.
Walker & Dunlop used a three-year, interest-only bridge loan to allow Sandpiper Hospitality to complete the acquisition while the properties are stabilized. Within the portfolio, two of the properties were recently constructed and have not yet achieved stabilization, and three of the four will undergo a rebranding from a Value Place to a WoodSpring Suites in the fourth quarter of 2016. 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.
Managing Director, Stephen Farnsworth and Managing Director and Head of Originations, WDCPF, Geoff Smith led the team. Mr. Smith stated, “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.” Mr. Farnsworth further commented, “Sandpiper has built an excellent management company and has done an outstanding job leasing up and managing these assets prior to acquisition. Walker & Dunlop is thrilled to deliver this bridge execution and continue our relationship as Sandpiper continues to grow in new markets.”
On behalf of Sandpiper Hospitality, Carter Rise noted, “We are pleased with the acquisition and the work Walker & Dunlop did to find the right financing for our needs. We have partnered with the Walker & Dunlop team on multiple financings and they always do an excellent job for us. They delivered solid execution on a challenging transaction within a very tight timeframe.”
Extended stay properties in this portfolio included:
Value Place, Worthington - Columbus, Ohio - 124 guest rooms
Value Place, Fairfield - Cincinnati, Ohio - 119 guest rooms
Value Place, Fort Wayne - Fort Wayne, Indiana - 124 guest rooms
Extended stay hotels are ideal for nightly, weekly, or those travelers who need additional time, with the comforts similar to their own home. Guest room options include a studio, a studio with a sleeper sofa, double and queen bed. Room amenities include a kitchen with a refrigerator, microwave, and two-burner stovetop, flat panel television with cable and premium movie channels, and Wi-Fi internet. Hotel amenities include 24/7 guest laundry facilities, vending machines, a la carte items such as dish packs and cookware, and all interior corridors have key card access.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.
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