Tower Capital Arranges $5,600,000 Acquisition Loan for Comfort Inn

Phoenix Arizona based structured finance firm, Tower Capital, recently arranged a $5,600,000 acquisition loan on behalf of a California-based hotel group to acquire a 129 room Comfort Inn, located in Chandler Arizona. The property is located off of the I-10 Freeway and Loop 202 interchange and is well positioned in an area of high growth for the valley. The 4-story limited service hotel was originally built in 1997 and renovated in 2012. The buyer purchased the asset for $7.7 million, or $59,690/key.

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The $5.6 million dollar loan was secured through a credit union and represents approximately 73% of the purchase price. It offers the borrower a 4.5% interest rate, fixed for 5 years, and is based on a 25 year amortization schedule and 10 year total term.

 

This transaction is the second Comfort Inn that Tower Capital has financed within the past 30 days. Commenting on the transaction, Adam Finkel, principal of Tower, said “It was important for the borrower to have as much prepayment flexibility as possible so we utilized a credit union for the financing. Unlike CMBS loans which are typically accompanied by a hefty defeasance if paid off early, and banks which are more flexible but will still usually have a step down prepayment structure, credit unions offer the most flexibility with zero prepayment penalty, as long as the borrower and asset meet the credit unions parameters.”

 

Tower Capital is a structured finance firm specializing in debt and equity placement on behalf of commercial real estate investors throughout the country. They offer borrowers short term bridge solutions through their in-house private lending platform, as well as conventional financing through their commercial mortgage brokerage division.

 

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