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The Madison Group arranges a $9,300,000 SBA 504 loan to purchase a hotel in the Phoenix, Arizona market.

Tags: Hotel Financing, hotel loans, 504 hotel loans, SBA hotel loans, hotel construction loans, hotel financing options, hotel business loan, boutique hotel financing, financing for hotel purchase, loan to buy hotel, hotel construction lender, hotel financing options, hotel acquisition financing, commercial mortgage for hotel purchase, SBA hotel financing
Tuesday, Mar 05, 2024
by Jared Shupe

The Madison Group (TMG), a leading national source of hospitality financing, arranged a $9,300,000 SBA 504 purchase loan for the acquisition of an 88 room hotel near the Phoenix, Arizona international airport. 

As an experienced operator and owner of hotels, the borrower was seeking the best the market had to offer for hospitality acquisition financing.  Understanding the difficult hospitality market since the pandemic restricted travel, they wanted to understand the broader market beyond their existing relationships.  The Madison Group was able to source an SBA 504 structure with excellent partners who worked diligently to meet closing deadlines through the holiday months.  Despite various hurdles throughout he process The Madison Group, Borrower, Lender, and CDC worked lockstep to work to a successful closing.  

Property: Hotel

Location: Arizona

Loan Amount: ~$9,300,000

Interest Rate: 7.75%

Term: 10 years                  

Amortization: 25 years  

Prepayment:  None        

Guarantee: Recourse



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