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.