VALUE ADDED BY INTERWEST CAPITAL
Interwest first became aware of the Crowne Plaza San Marcos Golf Resort in October 2010, submitted an offer for the hotel’s non-performing debt in December 2010, entered into contract in February 2011, and rescinded the purchase offer in March 2011 due to the borrower’s bankruptcy filing. The team at Interwest continued to foster the relationship with the lender and eventually entered an agreement to directly purchase the underlying real estate. Interwest acquired the property January 28, 2013.
The due diligence process involved numerous moving pieces including the decision for a branding partner, liquor license procurement, and the exploration of issues surrounding water rights and golf course management.
Branding: Interwest analyzed the management alternatives, including operating the property as an independent hotel. After exploring the options, Interwest chose to utilize Crowne Plaza because of its familiarity with the property, market, and ability to capture group room nights for meetings.
Golf course: Investigating the various issues surrounding golf course management was crucial. These efforts steered Interwest’s due diligence towards the deeded water rights.
Water rights: By working with the local water district the team was able to track down and quantify the amount of water rights allocated to the resort. In all, it was discovered that the resort has been deeded, in perpetuity, requisite water rights to provide cost free water for the golf course.
Liquor license: In a short timeframe Interwest sifted through liquor licenses available for sale. Interwest chose to purchase a 3rd party’s liquor license rather than utilize the license tied to the Crowne Plaza San Marcos Golf Resort because the license was encumbered by liens.
The property received a complete guestroom renovation, upgraded meeting and banquet facilities, and an upgraded golf club house.
The first phase of ownership will involve rehabilitation of the historic property to bring it up to modern standards of luxury. Renovations are expected to be complete by year-end 2013.
1 San Marcos Place, Chandler, AZ 85225
249 Rooms, plus 35,000 sf meeting space
Built in 1913 the 165,000-square-foot hotel and the 18-hole golf course are located in the heart of downtown Chandler within close proximity to high technology R&D and fabrication facilities.