Tower Capital Arranges $5.9M Acquisition Loan for Comfort Inn

Commercial Real Estate Finance Phoenix

PHOENIX—Structured finance firm Tower Capital arranged a $5.9-million acquisition loan on behalf of a Toronto-based hotel group to acquire a 122-room Comfort Inn here.

The property is located off of the I-10 Freeway and W. 51st Ave. and is the site of a major freeway expansion that will connect the I-10 and 202 freeways. The three-story limited service hotel was purchased for $6.3 million, or $51,430/key, and will undergo a $1.1-million renovation that will include extensive upgrades throughout the rooms, interior corridors, lobby, meeting room, business center, exercise room and pool area.

The loan secured by Tower Capital represents approximately 80% of the total cost and was broken up into two separate loans with the same lender. The property was purchased with a $4.8-million bridge acquisition loan based on a 36-month term. The loan included 18 months of interest-only payments followed by a 25-year amortization schedule and was secured by a first deed of trust on the building and land. The second $1.1-million Capex loan was based on an 84-month fully amortizing term, which included 12 months of interest-only payments and was secured by the FF&E at the property.

“The freeway expansion at this location, which is already a busy trucking route, presents an amazing investment opportunity for our client, who also owns another property nearby. As we reach the end of the year, we are experiencing that many conventional lenders are full on hospitality allocations, making financing this asset class more challenging than others. For this transaction we utilized an east coast based finance company that specializes only in hotels after we were turned away by some of our more traditional sources,” said Kyle McDonough, principal, Tower Capital.

Tower Capital is a structured finance firm specializing in debt and equity placement on behalf of commercial real estate investors throughout the country. They offer borrowers short-term bridge solutions through their in-house private lending platform, as well as conventional financing through their commercial mortgage brokerage division.

– Hotel Business.com

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About Tower Capital:
We are a Commercial Real Estate Finance firm specializing in debt and equity placement on behalf of commercial real estate investors throughout the country. We offer borrowers short term bridge solutions through our in-house private money platform, as well effectuating conventional permanent financing through our commercial mortgage brokerage division.

Commercial real estate financing from Tower Capital provides competitive solutions for professional real estate investors seeking loans.

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