Papago Inn reinvestment highlights Scottsdale McDowell Corridor comeback

1224Ns Business Story (Papago 2) FOR WEBA view of the renovations now complete at The Best Western Papago Inn

A critical financing package has led to an upgrade of one of south Scottsdale’s best-known hospitality facilities and will help modernize it to reflect the revitalization of the McDowell Road Corridor.

The Best Western Papago Inn at 7017 East McDowell Road in south Scottsdale has undergone renovations and is now the Magnuson Hotel Papago Inn.

The revitalization of the facility comes as the McDowell Road corridor, a nearly three-mile stretch from Loop 101 to 64th Street, is experiencing a resurgence after suffering setbacks over the course of the past couple of decades.

With SkySong, The Arizona State University Scottsdale Innovation Center, auto dealerships being repurposed, and other large projects and investments on tap, the McDowell Road corridor is fast becoming a commerce draw. The renovation and rebranding of the hotel will help add to the new energy and continued revitalization efforts in the area.

The project is being developed by Bret and Patricia Wirta, who recently purchased the property after the previous owners retired. The new owners turned to AVANA Capital to facilitate a loan to purchase and renovate the 50-year-old property.

“We’re thrilled to be able to invest in the McDowell Road corridor and to be able to upgrade this promising hotel property,” said Bret Wirta, one of the owners of the hotel.

“We look forward to making this a great destination for business travelers coming to the many new businesses in the area, for long-time clients who have been loyal to the property, and for leisure travelers who want to experience all Scottsdale has to offer.”

1224Ns Business Story (Papago 1) FOR WEBA view of the renovations now complete at The Best Western Papago Inn

Bret and Patricia also own Quality Inn, Holiday Inn Express and Black Bear Diner in Sequim, Wash. under separate entities. The company has about 100 employees at its operations, including approximately two dozen who are working at the Papago Inn.

“It’s a very unique property in that it’s a boutique hotel like some other hotels, but it has great features like a beautiful courtyard, outdoor pool, mature trees, a bird aviary — it’s a little oasis in the middle of Scottsdale,” Bret Wirta said.

“We’re grateful that AVANA Capital helped us with a financing package that not only allowed us to purchase the property, but to have the flexibility to make improvements as well that will make it an even better experience for travelers.”

Founded in 2003, Magnuson Hotels has become the fastest growing hotel chain in history, representing nearly 2,000 United Kingdom and North American hotels with assets in excess of $6.75 billion. A top 10 global hotel chain, Magnuson Hotels has consistently ranked as the No. 1 Hotel Company of Inc. Magazine’s 5,000 fastest growing private U.S. companies.

The project will bring a revived hotel with 58 rooms and two stories, and the new owners are examining the idea of opening a restaurant as part of the facility. AVANA Capital facilitated the loan for the group of owners.

“It’s great to help improve a key property in the McDowell Road corridor and to help these entrepreneurs provide a better experience for travelers,” said Sanat Patel, Managing Partner of AVANA Capital.

“Because we were able to help, an enterprising group of owners will help keep the positive momentum going in this part of south Scottsdale while creating new jobs for the area as well. It is an older property, but we saw a great deal of potential. Renovations such as this create economic growth, which helps improve communities and create jobs for local residents.”

Since 2005, AVANA Capital has funded more than $600 million in loans that led to 9,000-and-counting new jobs created and saved in 30 states, under the United States Small Business Administration Lending Programs.

AVANA Capital specializes in SBA and USDA loans designed to grow businesses, so the parameters for qualification can be easier to achieve than conventional commercial real estate loans.

This means AVANA Capital’s borrowers can access up to 90 percent loan-to-value financing, with quick prequalification and a range of loan structures. What also helps AVANA help companies is its ability to partner with other lenders. These partnerships mean more loans can be originated and funded for companies that are looking to grow.

Mr. Evans is Phoenix-based public relations professional

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