The LakeShore Hotel is a 104-Key midscale hotel located in the heart of Fountain Hills, AZ. The property was originally built in 2005 as a Holiday Inn and converted to a Lexington Hotel in January 2014. Tower’s client, an Arizona-based real estate investment company acquired the asset for $7,645,000 with plans to convert the flag to a Best Western and perform a $1,200,000 renovation to the exterior and interior of the property. The buyer has a strong track record of repositioning assets and recognized an opportunity to maximize the performance of the property through a significant facelift and extensive renovations.

The $5.375 million dollar loan secured by Tower Capital represents approximately 65% of the purchase price and renovation cost. It offers the borrower a 3.91% interest rate, fixed for 5 years with one year of interest only and a 25-year amortization schedule thereafter.