Marcus & Millichap’s IPA Capital Markets Secures $79 Million Construction Loan for Transformation of Iconic San Antonio Landmark
Marcus & Millichap's IPA Capital Markets has successfully secured a $79 million construction loan for the renovation of El Tropicano Hotel, a historic landmark on San Antonio's River Walk. The financing, provided by Fortress Investment Group, was arranged for Trestle Studio and involves state and federal historic tax credits.
The property, originally built in 1962 and acquired by Trestle Studio in December 2023, will undergo a comprehensive transformation into a modern urban resort. The renovated hotel will feature 315 guest rooms, an 8,065-square-foot pool deck (San Antonio's largest), over 16,000 square feet of event space, and various amenities including a 5,000-square-foot fitness center and spa. The project includes exterior improvements with a new River Walk staircase connection.
Marcus & Millichap's IPA Capital Markets ha ottenuto con successo un prestito per la costruzione di 79 milioni di dollari per la ristrutturazione dell'El Tropicano Hotel, un simbolo storico lungo il River Walk di San Antonio. Il finanziamento, fornito da Fortress Investment Group, è stato organizzato per Trestle Studio e prevede crediti d'imposta storici statali e federali.
La proprietà, originariamente costruita nel 1962 e acquisita da Trestle Studio nel dicembre 2023, subirà una trasformazione completa in un moderno resort urbano. L'hotel ristrutturato presenterà 315 camere per gli ospiti, una piscina di 8.065 piedi quadrati (la più grande di San Antonio), oltre 16.000 piedi quadrati di spazio eventi e vari servizi, tra cui un centro fitness e una spa di 5.000 piedi quadrati. Il progetto include miglioramenti esterni con una nuova connessione per la scala del River Walk.
Los Mercados de Capital de IPA de Marcus & Millichap ha asegurado con éxito un préstamo de construcción de 79 millones de dólares para la renovación del Hotel El Tropicano, un hito histórico en el River Walk de San Antonio. El financiamiento, proporcionado por Fortress Investment Group, fue gestionado para Trestle Studio e involucra créditos tributarios históricos estatales y federales.
La propiedad, construida originalmente en 1962 y adquirida por Trestle Studio en diciembre de 2023, experimentará una transformación integral en un moderno resort urbano. El hotel renovado contará con 315 habitaciones, una terraza de piscina de 8,065 pies cuadrados (la más grande de San Antonio), más de 16,000 pies cuadrados de espacio para eventos y varias comodidades, incluyendo un gimnasio y spa de 5,000 pies cuadrados. El proyecto incluye mejoras exteriores con una nueva conexión de escaleras al River Walk.
Marcus & Millichap의 IPA 자본 시장은 샌안토니오 리버워크에 있는 역사적인 명소인 엘 트로피카노 호텔 리노베이션을 위한 7900만 달러 건축 대출을 성공적으로 확보했습니다. 이 자금은 포트레서 투자 그룹에서 제공되었으며, 트레슬 스튜디오를 위해 편성되었고, 주 및 연방 역사적 세금 공제가 포함됩니다.
이 부동산은 원래 1962년에 지어졌으며 2023년 12월에 트레슬 스튜디오에 인수되었습니다. 현대적인 도시 리조트로의 포괄적인 변화를 겪을 예정입니다. 리노베이션된 호텔에는 315개의 객실, 산안토니오에서 가장 큰 8,065제곱피트의 수영장 데크, 16,000제곱피트 이상의 이벤트 공간과 5,000제곱피트의 피트니스 센터 및 스파를 포함한 다양한 편의 시설이 갖춰질 것입니다. 이 프로젝트에는 새로운 리버워크 계단 연결을 포함한 외부 개선 사항이 포함됩니다.
Les Marchés de Capitaux IPA de Marcus & Millichap ont réussi à obtenir un prêt de construction de 79 millions de dollars pour la rénovation de l'Hôtel El Tropicano, un site historique le long du River Walk de San Antonio. Le financement, fourni par Fortress Investment Group, a été organisé pour Trestle Studio et inclut des crédits d'impôt historiques à l'échelle nationale et fédérale.
La propriété, initialement construite en 1962 et acquise par Trestle Studio en décembre 2023, subira une transformation complète pour devenir un complexe urbain moderne. L'hôtel rénové comportera 315 chambres, une terrasse de piscine de 8 065 pieds carrés (la plus grande de San Antonio), plus de 16 000 pieds carrés d'espace événementiel et divers services, dont un centre de fitness et un spa de 5 000 pieds carrés. Le projet comprend des améliorations extérieures avec une nouvelle connexion à l'escalier du River Walk.
Marcus & Millichap's IPA Capital Markets hat erfolgreich ein Bau-Darlehen in Höhe von 79 Millionen US-Dollar für die Renovierung des El Tropicano Hotels, einem historischen Wahrzeichen am River Walk in San Antonio, gesichert. Die Finanzierung, bereitgestellt von Fortress Investment Group, wurde für Trestle Studio arrangiert und umfasst staatliche und bundesstaatliche steuerliche Anreize für historische Gebäude.
Die Immobilie, die ursprünglich 1962 erbaut wurde und im Dezember 2023 von Trestle Studio erworben wurde, wird einer umfassenden Umgestaltung in ein modernes urbanes Resort unterzogen. Das renovierte Hotel wird 315 Gästezimmer, eine 8.065 Quadratfuß große Poolterrasse (die größte in San Antonio), über 16.000 Quadratfuß Veranstaltungsfläche sowie verschiedene Annehmlichkeiten, einschließlich eines 5.000 Quadratfuß großen Fitnesscenters und Spas, bieten. Das Projekt umfasst auch Außenverbesserungen mit einer neuen Treppenzufahrt zum River Walk.
- Secured significant $79 million construction loan for major renovation project
- Project expected to generate millions in economic activity for San Antonio
- Creation of hundreds of construction jobs
- None.
Insights
The successful closing of this
The deal's structure and size carry several strategic implications for MMI: First, it demonstrates the firm's ability to handle intricate, large-scale hospitality sector transactions, potentially opening doors to similar high-profile projects. Second, the successful navigation of tax credit complexities enhances MMI's credibility with institutional clients and could lead to increased deal flow in the historic property renovation segment.
From a revenue perspective, while individual loan arrangements don't typically move the needle significantly for MMI's overall financial performance, the expertise demonstrated in this transaction strengthens the company's competitive position in several ways:
- Establishes credibility in handling complex, multi-layered financing structures
- Expands the firm's track record in the hospitality sector
- Showcases ability to work with major institutional lenders like Fortress Investment Group
- Demonstrates expertise in tax credit financing, a specialized skill set that can command premium fees
The transaction also highlights MMI's strategic evolution beyond traditional brokerage services into more sophisticated capital markets solutions, which typically generate higher margins and foster longer-term client relationships. This diversification of service offerings helps insulate the company from cyclical downturns in traditional brokerage activity.
Jordan Ray, James Matheny, Steven Buchwald and Rachael Krawiecki of IPA Capital Markets secured the financing on behalf of Trestle Studio, a national lifestyle developer. Fortress Investment Group provided the financing.
“This complex transaction, which involved navigating state and federal historic tax credits, will fund a comprehensive renovation of the property,” said Ray. “This financing was a truly collaborative effort, requiring innovative thinking and a deep understanding of the market. We’re proud to have partnered with Trestle Studio to secure the funding they needed to transform this landmark asset into a world-class destination. The renovation is expected to create hundreds of construction jobs and generate millions of dollars in economic activity for the city of San Antonio.”
Originally constructed in 1962, the property was acquired by Trestle Studio in December 2023. “Following renovation, El Tropicano is slated to be a modern urban resort featuring 315 guest rooms, an 8,065-square-foot pool deck—the largest in San Antonio—over 16,000 square feet of event space and signature food and beverage outlets,” added Ray. “Additional amenities will include a 5,000-square-foot fitness center and spa. The project will also involve significant exterior improvements, including a new staircase connecting the hotel to the River Walk and a deck overlooking the river.”
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately
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Gina Relva, VP Public Relations
gina.relva@marcusmillichap.com
Source: Marcus & Millichap, Inc.
FAQ
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How many guest rooms will El Tropicano Hotel have after MMI's financed renovation?
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When did Trestle Studio acquire the El Tropicano Hotel property for the MMI-financed renovation?
