PHOENIX—Tower Capital, a commercial real estate structured finance firm, has arranged acquisition financing totaling $12.73 million secured by a 232-room Hilton hotel located in Tucson, AZ. Adam Finkel, CCIM, and Kyle McDonough worked on the financing.
The property was acquired by a subsidiary of Scottsdale, AZ-based Caliber Companies, a full-service commercial real estate investment firm. The purchase represents Caliber’s sixth major hotel acquisition in the last three years. Bill Murney of HREC’s Phoenix office represented the seller.
The full-service hotel was originally built in 1981 and underwent a renovation in 2009. Caliber acquired the asset for $9.45 million with an extensive $8-million renovation planned.
The non-recourse loan was funded by a San Francisco-based debt fund. The loan amount represents 67% LTC and is inclusive of both renovation costs and a lender-funded $400,000 interest reserve.
Commenting on the transaction, Finkel said, “Given the complexity of this transaction there were many points of negotiation that had to be overcome in order to bring the borrower and lender together. In the end we were able to formulate solutions that worked for both sides in order to facilitate a successful close.”