Phoenix & Southwest + Hospitality | February 20, 2019

Newly-Built Tucson Marriott Lands $40M Cash-Out Financing

Walker & Dunlop recently structured $40 million in financing for the newly-built AC Marriott in Tucson, AZ.

The transaction was a collaboration between two Walker & Dunlop capital markets teams: Jim Pierson and Keaton Merrell, based in Phoenix; and Tampa-based Alison Williams and Matt Baldwin. The team identified a CMBS provider as an ideal lending partner for the cash-out loan.

The financing was structured with an attractive interest rate and three years of interest-only payments. The 10-year loan also effectively lowered the debt service payments, and allowed the property’s developer, Tucson Urban, to pay off the existing construction debt.

Completed in the fall of 2017, the eight-story, 136-key property represents the first hotel built in downtown Tucson since the early 1970s. Within its first year of operation, the hotel reportedly exceeded pro forma and occupancy expectations.

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Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).