Tower Capital secured $5,953,020 for the cash-out, refinance of a 79-Key limited service hotel located in Peoria, Arizona.  The hotel is located adjacent to the Peoria Sports Complex and includes amenities such as an outdoor pool, complimentary breakfast, meeting space, fitness center, business center and guest laundry.  The subject property will undergo a $450,000 PIP and has an estimated completion date of September 1, 2020.   The structure allowed the Sponsor to pull out over $1,250,000 in cash out to renovate this hotel and others in their portfolio.  The loan was sized to 96% of the sponsors total cost basis and 60% of stabilized LTV.

Tower Capital’s client, a Canadian-based hotel operator with 21 hotels in their portfolio has decades of experience in hotel management and renovations.  The 10 year loan secured by Tower Capital has a fixed interest rate of 4.75% for the first 5 years and then adjusts to the 5 year Treasury plus 300 basis points with a floor of 4.50% for the second 5 year term.