Dealmaker: Future Tempe, Ariz. Hotel Receives $86.5M Construction Loan

CAI Investments LLC, Las Vegas, received an $86.5 million construction loan to build a Westin by Marriott hotel in Tempe, Ariz.

The new 290-room hotel will be walking distance from Arizona State University, Sun Devil Stadium and a large office park, resulting in several demand generators. Phoenix Sky Harbor International Airport–the nation’s tenth-busiest airport–is three miles from the site.

Silver Ridge Partners Principal Aden Kun sourced the project financing and Hall Structured Finance, Dallas, funded the loan.

“Tempe has cultivated a unique urban environment in one of the country’s fastest-growing major metropolitan areas,” said Hall Structured Finance President Mike Jaynes. He said the hotel’s location and Westin’s robust loyalty program made the financing opportunity appealing.

Construction began in March; CAI Investments said it anticipates a second quarter 2021 opening.

The hotel will occupy just under an acre in downtown Tempe. The 18-story property will include a rooftop pool, full-service restaurant and more than 14,000 square feet of convention space.