Caliber Closes $22.5 Million Refinancing for Hotel Property
SCOTTSDALE, Ariz. – Caliber (NASDAQ: CWD), a prominent name in real estate investment, announced the successful refinancing of $22.5 million for the DoubleTree by Hilton Hotel property located in Tucson. This transaction, funded by Citi, is part of Caliber's strategy to enhance its portfolio within its Tax-Advantaged Opportunity Zone Fund.
Strategic Use of Proceeds
The proceeds from this refinancing will be strategically allocated to strengthen the asset further and support reinvestment across Caliber’s Fund portfolio. This initiative emphasizes Caliber's commitment to continuous growth and value creation.
CEO Comments on the Deal
Chris Loeffler, CEO of Caliber, highlighted the importance of this asset in a robust market. He noted, "The DoubleTree by Hilton Tucson Downtown Convention Center is a high-quality asset in a strong market, and this transaction underscores its long-term value. This deal marks our first financing with Citi, and we look forward to a growing relationship. Additionally, we were pleased to collaborate with Arriba Capital, who acted as our financial advisor on this financing. We are optimistic about continued deal closures throughout the year ahead."
About the Hotel
Opened in 2021, the DoubleTree by Hilton Hotel was developed in partnership with Rio Nuevo and the City of Tucson. The hotel is operated by Highgate Hospitality and enjoys a favorable location near the University of Arizona, downtown Tucson, and vital medical and business centers, enhancing its role in local economic development.
Expert Insights
Ryan Bosch, Principal at Arriba Capital, remarked on the deal's significance: "This transaction reflects both the strength of the underlying asset and Caliber’s continued ability to realize value through disciplined execution. Delivering sponsor liquidity while positioning the asset for long-term success made this a win on all sides."
Opportunity Zone Fund Strategy
Caliber’s Tax-Advantaged Opportunity Zone Fund focuses on strategic real estate investments in high-growth markets throughout the Southwest. This Fund is dedicated to delivering long-term risk-adjusted returns while fostering positive impacts for the communities involved. Currently closed for new investments, the Fund is exploring opportunities to acquire or merge with established Opportunity Zone funds seeking to diversify and expand their portfolios. It manages approximately $271 million spread across 18 individual assets and qualified opportunity zone investments.
A Closer Look at Caliber
With a strong portfolio valued at over $2.9 billion, Caliber boasts 16 years of experience in managing and developing real estate. Their focus spans various domains, including hospitality, multi-family residential, and industrial properties. The company prides itself on capturing investment opportunities often overlooked by mainstream institutions, supported by an in-house shared services group that maximizes control over real estate investments.
Investing in Caliber's Growth
Investors can participate in Caliber’s success via Nasdaq-listed stocks or through Private Funds. Caliber continually seeks avenues for growth and improvement in their investment strategies to assure robust returns for their stakeholders.
Frequently Asked Questions
What is the amount of refinancing secured by Caliber?
Caliber secured a refinancing amount of $22.5 million for the DoubleTree by Hilton Hotel.
Who provided the funding for this refinancing?
The funding for the refinancing was provided by Citi.
What will the proceeds from the refinancing be used for?
The proceeds will be used to strengthen the asset and support reinvestment across Caliber’s portfolio.
Who managed the financial advisory for the deal?
Arriba Capital acted as the financial advisor for the refinancing transaction.
What is the focus of Caliber’s Tax-Advantaged Opportunity Zone Fund?
The Fund targets strategic real estate investments in high-growth markets with a goal of delivering long-term risk-adjusted returns while positively impacting communities.
