HSF closes $86.5M construction loan for Arizona Westin

Hall Structured Finance closed a new first-lien loan totaling $86.5 million—its largest single loan to date— to finance the construction of a new Westin hotel in Tempe, Ariz. The developer, Las Vegas-based CAI Investments, began construction on the hotel in March and anticipates opening the property in the second quarter of 2021.

The 18-story, 290-room hotel will include a rooftop infinity pool, a poolside bar, a fitness center, a full-service restaurant and bar, a business center, a Starbucks and more than 10,000 square feet of meeting space. It will be within walking distance of Arizona State University, Sun Devil Stadium and a large office park. Phoenix Sky Harbor International Airport will be located 3 miles away.

“Tempe has cultivated a unique urban environment in one of the country’s fastest-growing major metropolitan areas,” Mike Jaynes, president of HSF, said in a statement. “The hotel’s premier location in this market and Westin’s robust loyalty program through Marriott made this a great fit for our loan program.”

HSF specializes in providing capital for ground-up construction, adaptive reuse, major asset repositioning and renovations for commercial real estate projects throughout the U.S. It has closed more than $255 million in loans this year so far and is on track to close more than $400 million by the end of the year.