Parkview Financial announced today it has provided a $42.5 million loan to Austin, TX-based Shir Capital for the purchase, redevelopment, and repositioning of Hotel Elegante located at 2886 S. Circle Drive in Colorado Springs, CO. Built in 1974 and situated on 17 acres, Hotel Elegante is a 496-key hotel that features a conference center, restaurant, pool, and lounge. With the sale complete, the new ownership is now embarking on a phased renovation on common areas as well as the conversion of the rooms to studio apartments over the next 24 months.
“This dated hotel presented an ideal adaptive reuse strategy for the borrower. Ultimately, the project will help meet some of the pent-up demand for workforce housing in the underhoused and growing Colorado Springs market,” said Paul Rahimian, CEO and Founder of Parkview Financial.
Rahimian added, “Shir Capital has an extensive track record of successful, high-quality hotel-to-multifamily conversions nationwide, completing and exiting 14 projects to date.”
Working within the current room layouts, the new ownership will add kitchenettes, closets, and perform upgrades to modernize the rooms. The units are approximately 350 square feet (sf) and all utilities will be included in the rent. Additionally, the 29,600-sf conference center will be converted into self-storage which will be run by a third party and will be available to the greater community.
The project is located in south Colorado Springs. It is approximately three miles from downtown Colorado Springs and is a 15-minute drive to the Colorado Springs Airport. The apartment vacancy rate in the submarket is about 3.6% and there have been no new multifamily projects in south Colorado Springs for more than five years.
About Parkview Financial
Parkview Financial is a direct private lender specializing in ground up commercial and residential real estate financing. Through a private real estate debt fund, we provide short-term bridge and construction loans secured by first trust deeds to developers throughout the United States. Since launching the Fund in 2015, Parkview has successfully executed more than $3 billion in financing for multifamily, retail, office, industrial and mixed-use projects with executed loans ranging from $5 million to $200 million.
With offices in Los Angeles, New York, Denver and Atlanta, our firm has grown exponentially since it was founded in 2009 by Paul Rahimian, its CEO. Parkview has earned an unparalleled reputation within the commercial real estate industry as one of the most respected private construction lenders in the nation. This has been accomplished through our proven ability to provide fast, creative financing solutions to borrowers who need more leverage and certainty of execution. Fortified with an experienced team of in-house experts, Parkview is able to be nimble and creative even when it comes to some of the most challenging projects.