Land Acquisition Loan, Phoenix, AZ
- Capital Source: Private Money
- Purpose of Loan: Land Acquisition
- Loan Amount: $3,250,000
- LTC: 81% Land Loan
Tower Capital recently arranged $3.25 million in financing for the acquisition of a 3.34 acre parcel of land beneath the 81-key Motel 6 located in Phoenix, AZ. The two-story project was originally built in 1965 and is situated near the Phoenix Sky Harbor Airport.
Tower’s client, a California based investor, originally acquired the hotel, which was encumbered by a land lease, from Motel 6 Corporate in 2020. In order to gain fee simple ownership of the hotel, the borrower had to acquire the land from the owner. The borrower had a quick close timeframe, and engaged Tower Capital to source the acquisition financing.
The borrower’s main objective was to obtain the maximum amount of leverage possible. After running a competitive process, Tower produced multiple options for its client, achieving 81% LTV. Additionally, the borrower acquired roughly two acres of vacant land adjacent to the hotel, providing the borrower with multiple exit strategies, including a future redevelopment.
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 $300 Million and have financed over $2 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.