Tower Capital secured $3,709,000 for the refinance of a limited service hotel located in Youngtown, Arizona.  The subject property is an existing 96-room hotel operated as the Quality Inn & Suites Phoenix NW Sun City.  The improvements were constructed in 1998 and were renovated in 2019.  The subject provides such amenities as an outdoor pool, complimentary breakfast and guest laundry. The structure allowed the Sponsor to pull out over $1,300,000 in cash out to renovate other hotels in their portfolio.  The loan was sized to 78% of the sponsors total cost basis and 50% 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 adjust to the 5 year treasury plus 300 basis points with a floor of 4.50% for the second 5 year term.