Phoenix-based structured finance firm, Tower Capital, recently arranged a $7,334,000 acquisition loan on behalf of a private investor to acquire the 267 key Hotel Tucson City Center. The property is located near downtown Tucson and is famed for holding one of the largest international gem shows each year, as well as being one of the only facilities with an Olympic size swimming pool in the region. The property was financed with an SBA loan representing 75% loan-to-value.
“The fact that the property is not a major flag and is located in a market that is still in the process of recovering from the recession, created an uphill battle with most conventional lenders,” Adam Finkel, principal at Tower Capital, commented. “Additionally the borrower does not have a strong background operating hotels which created further challenges. In the end we determined that the best solution was to take advantage of the SBA 504 program.”
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 effectuating conventional financing through their commercial mortgage brokerage division.