IPA Capital Markets, a division of Marcus & Millichap, specializing in capital markets services for major private and institutional clients, closed a $79-million construction loan for El Tropicano Hotel, a historic landmark property on San Antonio’s River Walk.
Jordan Ray, James Matheny, Steven Buchwald and Rachael Krawiecki of IPA Capital Markets secured the financing on behalf of Trestle Studio, a national lifestyle developer. Fortress Investment Group provided the financing.
“This complex transaction, which involved navigating state and federal historic tax credits, will fund a comprehensive renovation of the property,” said Ray. “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 is expected to create hundreds of construction jobs and generate millions of dollars in economic activity for the city of San Antonio.”
Originally constructed in 1962, the property was acquired by Trestle Studio in December 2023. “Following renovation, El Tropicano is slated to be a modern urban resort featuring 315 guestrooms, an 8,065-sq.-ft. pool deck—the largest in San Antonio—over 16,000 sq. ft. of event space and signature food and beverage outlets,” added Ray. “Additional amenities will include a 5,000-sq.-ft. fitness center and spa. The project will also involve significant exterior improvements, including a new staircase connecting the hotel to the River Walk, and a deck overlooking the river.”
