IPA Capital Markets (a division of Marcus & Millichap), specializing in capital markets services for major private and institutional clients, announced the closing of a $79 million construction loan for El Tropicano Hotel, which is a historic landmark property on San Antonio’s River Walk in San Antonio, Texas.
Jordan Ray, James Matheny, Steven Buchwald, and Rachael Krawiecki of IPA Capital Markets secured the funding for Trestle Studio, a national lifestyle developer. Fortress Investment Group provided the financing.
Initially constructed in 1962, this property was acquired by Trestle Studio in December 2023.
KEY QUOTES:
“This complex transaction, which involved navigating state and federal historic tax credits, will fund a comprehensive renovation of the property. 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.”
“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. 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.”
– Jordan Ray
