Bank of Tucson Provides Construction Loans for Downtown Tucson Hotel
If you’ve driven through downtown Tucson lately, specifically around the intersection of Fifth Avenue and Broadway, you’ve probably seen a large hotel property under construction. It’s going to be a beautiful 136-room AC Hotels by Marriott with 5,000-square feet of ground floor retail space.
We’re excited about this project. Not only because it promises to be a tremendous asset to downtown Tucson, but also because we were able to help make it happen.
Kevin Henry, a senior vice president at our bank, has known and worked with the project’s co-developer, Scott Stiteler, for many years. If you think you recognize Scott’s name, it’s because he’s redeveloped a significant portion of downtown Tucson, including restaurants, apartments, creative office space and retail projects. Some of his notable projects include the One North Fifth Apartments, HUB Restaurant & Creamery, Connect Coworking at The Rialto Theatre and Pizzaria Bianco.
For this AC Hotels by Marriott project, Scott teamed up with developer Rudy Dabdoub from Nogales. Rudy and his family own and operate six flagged hotels in Arizona and Northern Mexico. They have also developed three million-square-feet of industrial warehouse space, as well as commercial shopping plazas, residential communities and office projects.
This dynamic duo and their hotel development site attracted the attention of AC Hotels by Marriott, a hotel chain in the Marriott family that focuses on contemporary urban design with state-of-the-art technology and European flair. AC Hotels by Marriott hotels have an outdoor swimming pool and deck, fitness center, business center, lounge, bar, breakfast area, poolside bar, 1,500-square feet of meeting space, free WiFi and guest laundry facilities.
Scott and Kevin started talking in May 2014 about a construction loan for the project. Kevin recruited our bank’s chief credit officers, Mark Phillips and David Ross, and they all met to see the site and discuss the project.
Ultimately, with help from Karen McGuire, manager of our construction lending department, we were able to provide the entire construction loan for this project. We also stepped in to provide a bridge loan when Scott and Rudy needed to acquire an adjacent property and demolish a structure in order to have additional property needed for the hotel construction. Uncovering an underground storage container required some unexpected remediation work, but the team forged ahead and we secured the loans Scott and Rudy needed.
With construction progressing well, Tucson will soon have a high-quality AC Hotels by Marriott hotel in close proximity to the Congress entertainment district, the recently-completed Sun Link public transportation system, the Tucson Convention Center and The University of Arizona.
We can’t wait for the grand opening!
Posted on September 14, 2016, in Clients and tagged AC Hotels by Marriott, construction loan, David Ross, Karen McGuire, Kevin Henry, Mark Phillips, Rudy Dabdoub, Scott Stiteler. Bookmark the permalink. Leave a comment.