May 6, 2019— Trez Capital announces the closing of a $15 million construction financing loan for Phoenix-based Virtua Partners’ first-ever Opportunity Zone project. Virtua Credit, a commercial real estate investment and advisory services firm, arranged the loan, which will finance a 128-room SpringHill Suites by Marriott in Avondale, a suburb just west of Phoenix. Located off North 99th Avenue in Avondale, the hotel will anchor a 58-acre mixed-use development that will include retail, restaurant, multifamily and single-family developments.
“Over the past five years, the Avondale area has grown remarkably and with companies relocating to the west Phoenix region, the demand for limited service hotels that cater to business travelers and families has been substantial,” said Adrian Watkins, vice president at Trez Capital. “As part of the Opportunity Zone program, this SpringHill Suites hotel will offer on-the-job management training and leadership growth opportunities to its employees.”
The hotel, which is slated to open summer 2020, will have the latest design elements from the Marriott brand, including a new décor package. In addition to a fitness center and pool, the hotel will also feature amenities for the business traveler like free Wi-Fi, in-suite workspaces and an on-site business center. Hotel Equities will manage the hotel once it opens next year.
The Opportunity Zone program was introduced in the 2017 Tax Cuts and Jobs Act as a bipartisan effort to encourage private capital to invest in economically distressed areas. Significant tax breaks are offered as incentives for long-term investment in designated communities.
“We are thrilled to have arranged the loan that financed Virtua Partners’ first opportunity zone project to break ground. Opportunity zone ventures such as SpringHill Suites in Avondale boost a market’s local economy, and attract businesses and investors looking to make a profitable return,” noted Ethan Schelin, President of Virtua Credit. “We look forward to seeing this development come to fruition in the growing Sunbelt region and continuing to work with reputable lenders like Trez Capital to help finance similar projects across the country.”
This is the second limited service hotel Trez Capital has financed for Virtua Partners. In 2018, Trez Capital financed a 116-room Fairfield Inn & Suites by Marriott in Tolleson, which is also in the west Phoenix area.