Tower Capital recently arranged $9.828 million in financing for the construction of limited-service hotel in Last Vegas, NV.  The hotel will have 4 stories and 96 rooms.  The construction is expected to take fourteen months and be open for business in early 2024.

Tower’s client, a Las Vegas investor, was originally working with his own bank for the construction loan.  The borrower then reached out to Tower Capital after his bank was unable to close the loan after sitting on the third-party reports for months and then interest rates started to rise.  The borrower’s goal was a low rate, 70% LTC construction to perm loan.  After running a competitive process, Tower Capital produced multiple options for its client.

The borrower chose the best option which was 70% LTC for a 10-year term and 5 years fixed at 5.75%.  This lender was able to use the current land value instead of the original purchase price, reducing the amount of cash the borrower had to have in the deal.  As an added bonus, this lender was able to fix their rate with a signed term sheet, instead of waiting until closing adding additional interest rate risk.