Newly-Constructed Tucson Hotel Receives $40 Million in Financing via Walker & Dunlop
Walker & Dunlop, Inc. announced today that it recently structured financing in the amount of $40,000,000 for the newly-built AC Marriott in Tucson, Arizona. Completed in the fall of 2017, the eight-story, 136-key property marks the first hotel built in downtown Tucson since the early 1970s. Within its first year of operation, the hotel far exceeded proforma and occupancy expectations and has been a key contributor to the revitalization of Tucson’s central business district.
The transaction was a collaboration between two of Walker & Dunlop’s Capital Markets teams: Phoenix, Arizona-based Managing Directors Jim Pierson and Keaton Merrell; and Tampa, Florida-based Alison Williams and Matt Baldwin, who have extensive experience working with hospitality properties. The team identified a CMBS provider as an ideal lending partner for the cash-out loan. Despite its limited operating history, the AC Marriott garnered considerable attention from the capital markets due to its outstanding performance. The financing was structured with an attractive interest rate and three years of interest-only payments. The ten-year loan also effectively lowered the debt service payments and allowed the developer of the property, Tucson Urban, to pay off the existing construction debt.
“The success of this transaction wouldn’t have been possible without the collaboration and tenacity of the Walker & Dunlop culture. Thanks to Alison and Matt’s insights, we ensured that prospective lenders accurately underwrote the project’s existing tax incentive programs to offer the best loan terms,” said Mr. Pierson.
“After our first year of operation at AC Marriott Tucson, we successfully closed on a take-out loan with Walker & Dunlop managing all aspects of the transaction,” said Scott Stiteler, Managing Partner of Tucson Urban. “Despite the volatility in the CMBS market during the last two months of 2018, Walker & Dunlop delivered exceptional attention to our loan, our needs, and our timing. We look forward to working with the same team at Walker & Dunlop for many years to come.”
Walker & Dunlop is a leader in the commercial real estate finance space and has grown its Capital Markets group rapidly over the past several years. The company completed $8.6 billion in brokered loan originations in 2018, a 17 percent increase from 2017. To learn more about Walker & Dunlop’s diverse array of financing options, visit our website.
About Walker & Dunlop Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 700+ professionals in 29 offices across the nation have an unyielding commitment to client satisfaction.
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