Hotel Tucson City Center – Tucson, AZ
- Loan Amount: $7,334,000
- Capital Source: Non-Bank Lender & SBA
- Purpose of Loan: Acquisition
- LTV: 75%
- Term: 10 Years (1st Loan) – 20 Years (SBA Loan)
- Flexible Prepayment on 1st Loan
The Hotel Tucson City Center is a midscale full-service hotel comprised of 267 rooms specializing in servicing the thriving leisure/group sectors as well as business and corporate clients. Built in 1960 and renovated in 2006, Hotel Tucson heralds an expansive 10 acre lot beside the Interstate 10 in addition to the largest ballroom and meeting space in Tucson. The property consists of a two-story, wood frame structure that contains 162,138 square feet of gross building area.
The client seeks to add value to this asset through more efficient management, capital improvements, and an extensive marketing effort to boost hotel occupancy and revenues.
There were several challenges that Tower Capital overcame in order to finance the transaction. The fact that the property is not a major flag and is located in a market that is still in the process of recovering from the recession, turned many lenders away. Furthermore, the new owner has limited hotel operating experience and has never owned any assets in the subject market, which created further difficulty in finding a lender that would be comfortable with the deal. With the relentless “can do” attitude that Tower is known for, we dug deep into our capital relationships, contacting over 30 conventional lenders and working directly with one of only three direct CDC-SBA lenders in the state, to bring the acquisition financing to fruition.
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.