PHOENIX—Tower Capital, a locally based commercial real estate structured finance firm, arranged $28 million in acquisition and renovation financing for the 218-room Days Inn hotel, located in Scottsdale, AZ.
Principals Kyle McDonough and Adam Finkel CCIM led the transaction, which includes an extensive $12-million renovation budget that will reposition the asset into an independent boutique concept.
The property is situated on approximately 4.5 acres of Scottsdale Rd. frontage, north of downtown’s entertainment district. Los Angeles-based ESI Ventures, a real estate investment and development company, acquired the property. HRI Lodging will be in charge of operations at the full-service hotel. Local restaurateur Ryan Jocque will act as consultant for F&B at the new boutique hotel.
Tower Capital secured the non-recourse, interest-only bridge loan through a Connecticut-based real estate investment manager. The $28-million loan amount is inclusive of both acquisition and renovation costs, and represents 70% of the total project budget.
“Our client managed to negotiate a purchase of both the underlying ground lease, along with the existing structure,” said McDonough. “Where many others had failed, they managed to piece together a fee simple deal that maximizes the value of this A+ location.”