Monday June 24th, 2013 - 9:22AM
CUERO, TX—Aries Capital closed on a $4.7 million loan for a new 77-room Holiday Inn Express to be constructed here in the Eagle Ford Shale area.
Avalon, LLC, was the borrower in the loan transaction and received a $4.7 million construction loan with an 18-month, fixed-rate term at 6% interest. The permanent loan features a five-year arm at an interest rate of Wall Street prime plus 2.5% with a floor of 6%.
The transaction was funded through an SBA 504 loan and the CDC.
The Holiday Inn Express will service the growing Eagle Ford Shale area, a hydrocarbon-producing formation capable of producing both gas and oil. With oil reserves estimated at 3 billion barrels and with potential output of 420,000 barrels a day, the Eagle Ford Shale area is a significant economic driver in Texas, according to the company.