Day’s Inn Hotel – Scottsdale, AZ
- Loan Amount: $28.000,000
- Capital Source: Real Estate Investment Manager
- Purpose of Loan: Acquisition & Renovation
- LTC: 70%
- Term: 24 Months + 12 Month Extension Option
- Amortization: Interest Only
- Prepay: 12 Months Yield Maintenance
Located just north of the downtown entertainment district of Scottsdale, Arizona, the property was operated as a 218 key, full service, Day’s Inn at the time of acquisition. The $28,000,000 loan allowed the sponsor to purchase the existing ground lease in addition to the hotel which sits on 4.50 acres of prime Scottsdale Road frontage. The sponsor has $12 million budgeted for an extensive interior and exterior renovation. The buyer, a Los Angeles based Real Estate Investment and Development Company, plans to operate the property as full service independent boutique hotel.
The challenge on the transaction was that many lenders shy away from exterior corridor properties. That, coupled with the fact that the property will be de-flagged and run as an independent, provided a very slim pool of lenders that were interested in the deal. With exceptional tenacity, Tower Capital was able to secure the non-recourse, interest only, bridge loan through a Connecticut based Real Estate Investment Manager. The $28 million loan represents 70% of the total project budget.
About Tower Capital:
Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.
Established in 2015 and headquartered in Phoenix, Arizona, Tower Capital provides customized structured financing to investors throughout the United States. We specialize in debt and equity placement ranging from $2 Million to $100 Million and have financed over $500 Million for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.