Funding Purpose
Tauro Capital Advisors, Inc. was exclusively engaged to refinance an existing loan for a multi-tenant retail building located in Prescott, AZ. The 104,000 square foot building is a part of the Prescott Gateway Mall.
Property Description
The building was purchased as a vacant Sears in 2021. They were able to complete an adaptive reuse for ESPIRE Sports, a premier multi-sport complex that is home to 19 pickleball courts. ESPIRE Sports also has golf simulators, mini bowling, bocce ball, cornhole, a fitness center, and a basketball court.
Sponsors
The Sponsor is both the developer and operator of ESPIRE Sports. As a licensed General Contractor, they were able to complete the renovation at a substantially lower cost than anyone else.
Challenges
- While pickleball is the fastest-growing sport right now, it still is a fairly new concept for a retail use. ESPIRE Sports had just opened for business and had not fully stabilized at the time of marketing.
Solutions
- Tauro was able to source a finance provider that understood the popularity and future longevity of pickleball. The growing membership and cash flow every month helped to prove out viability of the concept.
Funding
- Loan Amount: $2,300,000
- Interest Rate:6.72%
- Loan Term: 5 Years
- Amortization: 20 Years
- Prepayment: 3%, 3%, 2%, 2%, 1% (Yrs. 1-5)
- Close Date: 8/1/2023
