Transaction Overview
George Smith Partners secured a $53,000,000 non-recourse construction loan for the expansion of a 32-key boutique lifestyle resort into a 177-Key Marriott Autograph Collection in Scottsdale, Arizona. The construction financing provided the Borrower with sufficient funds to not only expand the Property by adding 145-keys but also to repay the existing lender in full and cover all closing and financing costs.
GSP sourced a lender who understood the intrinsic value of the Property’s strategic location along with the development plans of the expansion. The three year floating rate note, priced at 8.95% + 1 Month LIBOR was sized to 64.5% of project costs. (This included an allowance of imputed equity, which represented a 25% increase in the Sponsor’s basis).
