Grossman Company Properties has secured $88 million in financing for its 740-key, all-suite Arizona Grand Resort located in Phoenix, Ariz.
CBRE Hotels/Finance acted as the exclusive financial advisor on the deal, arranging the non-recourse $88 million six-year floating rate loan through a domestic debt fund.
“This financing allowed the ownership group to achieve a number of key financial and strategic objectives,” Gavin Davis, CBRE Hotels/Finance’s senior vice president, said in a company release. “Group pace is picking up and resorts have gained considerable exposure in 2013 in transaction and financing activity relative to the last few years.”
Classic Hotels & Resorts, the hospitality division of GCP, operates affiliate-owned full-service resorts and boutique hotels in Arizona, California and Idaho and currently has 2,881 rooms.
Purchased by a GCP affiliate in 2006 and managed by Classic Hotels & Resorts, the Arizona Grand Resort was originally constructed in 1987 and underwent a $66 million renovation and expansion in 2009. At 164 acres, it is the largest AAA four-diamond-rated all-suite resort in the Southwest, it sits on the base of the spectacular South Mountain Preserve and boasts the largest resort water park in Arizona.
Enhancements throughout the resort—including refurbishment of all 646 guest suites, the development of 50 two-bedroom luxury villa suites and construction of a new resort lobby including the Lobby Grill, the Lobby Bar, the Marketplace Café and Golf Pro Shop—brought the property to a position equaling new resorts built in the Valley over the last few years.
Resort amenities include an award-winning 18-hole golf course, six unique dining venues, one of the few award-winning Arizona spas and fitness facilities in Phoenix, business center and gift shop. It also features 117,000 square feet of meeting and function space and a 20,000 square-foot ballroom.
The property sits just six miles from Phoenix’s Sky Harbor International Airport.
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