$8 million property renovation planned to transform hotel back to original glory.
Scottsdale, Ariz. (July 11, 2016) — Caliber Hospitality, a division of Caliber – The Wealth Development Company, today announced the successful acquisition of the 7-story, 232-guest room, Hilton Tucson East in Tucson, Arizona, for $9.27M. Ideally located within the heart of the Tucson Business District along with 12,000 sq. ft. of abundant meeting/convention space, a resort-style pool and upgraded dining facilities, the Hilton Tucson East is poised to be the premier full-service business hotel accommodating travelers to the Tucson region.
Purchased with private investor equity, in partnership with the Caliber Distressed Real Estate Income Fund (CDIF, LLC), Caliber plans an $8M property renovation. The Hilton Tucson East purchase expands Caliber’s lodging investment portfolio to six hotel properties, in both Arizona and Alaska, and includes such prestigious brands as Crowne Plaza, Hampton Inn & Suites, and Holiday Inn & Suites. As with all of Caliber’s hospitality holdings, HMC Hospitality will manage hotel day-to-day operations.
Caliber CEO and Co-Founder Chris Loeffler said, “The Hilton Tucson East is the proverbial ‘diamond in the rough’ that with the proper renovation plan and managerial expertise will be transformed into one of the finest hotels in Caliber’s portfolio.” He added, “The property will provide significant investor value creation as it was purchased approximately 70 percent below estimated replacement cost. Due to its solid market fundamentals, we’ve wanted to expand within Tucson beyond our current single-family and multi-family residential portfolio. This hotel is an excellent opportunity to do just that.”
The hotel is situated on 6.36 acres between Downtown Tucson and Saguaro National Park and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard.
“We’re thrilled to partner with Caliber, and excited to revitalize and restore this property to its original beauty,” said Frank Heavlin, president of HMC Hospitality. “We’ve set into motion our personnel and property plans, in order to elevate services, and provide an exceptional experience for our guests. This hotel will become a diamond in the Caliber/HMC hotel portfolio.”
About Caliber – The Wealth Development Company
Caliber assists investors in building their wealth through both equity and debt real estate based investments, either through individual assets, or through private funds. Caliber is focused upon opportunistically acquiring various types of commercial assets, with in-place cash flow, and maintaining low leverage on them. Through its proven renovation and management expertise, Caliber is able to increasing revenue, maximize tax benefits, all the while protecting investor capital. Caliber currently invests in Hotels, Self-Storage, Apartment Communities, Single Family Residential Properties, and Office Buildings. Caliber is a fully, vertically integrated, full-service real estate investment firm controlling all aspects of the investment cycle. Services include acquisitions, construction, development, property and asset management. www.CaliberCo.com