Marcus & Millichap Secures Major $79M Loan for San Antonio Landmark
Marcus & Millichap’s IPA Capital Markets Division has successfully secured a $79 million construction loan for the historic El Tropicano Hotel, a landmark property located on the famous San Antonio River Walk in San Antonio, Texas. The financing was obtained for Trestle Studio, a national lifestyle developer, with Fortress Investment Group providing the loan.
The El Tropicano Hotel, originally built in 1962, has a rich history and is poised for a major transformation into a modern urban resort. Following a comprehensive renovation, the property will feature 315 guest rooms, with a newly designed 8,065-square-foot pool deck, which will be the largest in San Antonio. Additionally, the renovation will add over 16,000 square feet of event space and several signature food and beverage outlets.
The new amenities will also include a 5,000-square-foot fitness center and spa, ensuring that the resort provides a premium experience to its guests. Furthermore, the project will introduce significant exterior improvements, such as a newly designed staircase that will connect the hotel directly to the River Walk, along with a deck that overlooks the river, offering guests stunning views of the iconic area.
Jordan Ray, James Matheny, Steven Buchwald, and Rachael Krawiecki from IPA Capital Markets played a crucial role in securing the financing for this renovation. “This complex transaction, which involved navigating state and federal historic tax credits, will fund a comprehensive renovation of the property,” said Jordan Ray, one of the principal financiers involved in the deal. “This financing was a truly collaborative effort, requiring innovative thinking and a deep understanding of the market. We’re proud to have partnered with Trestle Studio to secure the funding they needed to transform this landmark asset into a world-class destination.”
The renovation of the El Tropicano Hotel is expected to create hundreds of construction jobs, and the overall economic impact is anticipated to generate millions of dollars for the city of San Antonio. The project’s completion will elevate the city’s tourism and hospitality offerings, attracting visitors to the River Walk area, which is one of the most popular tourist destinations in Texas.
Trestle Studio, the developer behind the El Tropicano project, acquired the property in December 2023, signaling the beginning of a major renovation effort. The development firm is known for its ability to revitalize historic buildings while blending modern luxury with the rich character of the properties. This renovation of El Tropicano is part of Trestle Studio’s strategy to create innovative, lifestyle-driven spaces that appeal to both local residents and visitors.
In addition to the large pool deck and event space, the resort will feature several new signature dining options and lounges designed to create a vibrant and memorable experience for guests. The renovation plan also includes aesthetic upgrades to the building’s exterior, while preserving the historical aspects of the property that make it an important part of San Antonio’s architectural heritage.
The funding secured by IPA Capital Markets allows Trestle Studio to bring this vision to life and marks an important milestone in the city’s efforts to enhance its tourism infrastructure. The renovation is poised to play a key role in further establishing San Antonio as a destination for both business and leisure travelers.
IPA Capital Markets is known for its ability to structure financing solutions that meet the unique needs of complex real estate projects. The division, a part of Marcus & Millichap (NYSE: MMI), specializes in commercial real estate capital markets financing, providing clients with a wide range of services including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. Their team’s deep market knowledge and expertise in navigating the intricacies of large-scale projects made them a perfect partner for securing financing for this historic renovation.
Marcus & Millichap itself is a leading national brokerage firm that focuses on commercial real estate investment sales, financing, research, and advisory services. As of December 31, 2023, the firm employed 1,783 investment sales and financing professionals across 80 offices nationwide, providing a range of services to buyers and sellers of commercial real estate. The company closed 7,546 transactions in 2023, with a total sales volume of approximately $43.6 billion.
Marcus & Millichap The renovation of the El Tropicano Hotel is expected to be completed within the next few years and will breathe new life into a beloved San Antonio landmark. Once finished, the property will offer modern accommodations and amenities while retaining the historic charm that has made the El Tropicano an important part of the city’s identity. The completion of this project is sure to provide both locals and tourists with a new place to stay, dine, and experience the vibrant energy of the River Walk.
With its vast real estate expertise, Marcus & Millichap IPA Capital Markets has been instrumental in securing the financing needed for this exciting transformation. By working with a strong team at Trestle Studio and Fortress Investment Group, the firm has helped position the El Tropicano Hotel for a successful future, one that honors its past while providing the city with a refreshed and luxurious destination for years to come.
This project not only signals the growth of the San Antonio hospitality sector but also highlights Marcus & Millichap IPA Capital Markets’ continued role in facilitating high-impact, innovative developments across the country. The closing of this $79 million loan underscores the importance of strong partnerships and strategic financing in bringing large-scale projects to fruition, and the Marcus & Millichap El Tropicano renovation is set to become a key highlight for the city’s tourism industry in the years ahead.
