Tower recently arranged $6.8 million in long-term, fixed rate debt on behalf of McLaren Scottsdale and Mike Ward Automotive. Tower’s client was seeking to expand from a 7,500 SF location in the Scottsdale Airpark, to a larger 35,000 SF building that will allow them to expand their operation by holding more inventory and having a increased service capacity. Tower Capital was able to finance the $5.5MM acquisition and $3MM rehab with an 80% loan-to-value permanent loan from a regional bank.

Built in 1999, the ±34,768 SF property sits on 3.02 acres (±131,555 SF) of I-1 zoned land. Some property features include 16’ clear height to the truss, three (3) dock high roll up doors, one (1) grade level door and 1200 AMPS, 277/480 Volts, 3 Phase Power.

The $6.8 million loan represents 80% loan-to-value and offered a 3.75% fixed interest rate for 15 years, based on one year of interest only payments and then a 14-year amortization schedule.

This assignment was especially challenging because the ideal financing program would have been SBA, however at this time the franchise is not approved. The buyer reached out to Tower Capital and within a couple of weeks had 2 competitive options which were able to offer a similar structure to the higher leverage SBA financing. Additionally, this regional bank will be an important business partner for the dealership as it seeks to expand into other markets.