Gantry has arranged $27.9 million in structured financing to support the acquisition of Tubac Golf Resort & Spa in Tubac, Ariz. The AAA Four Diamond resort spans more than 500 acres on the historic Otero Ranch, approximately 45 miles south of Tucson with direct access to Interstate 19. The hospitality property offers 98 rooms and suites, including 17 private casitas, alongside a 27-hole golf course and a full-service spa.
The financing was secured on behalf of the acquiring sponsor by Gantry professionals Adam Parker and Andrew Christopherson. The capital stack combines two distinct loan components designed to support the purchase of the resort while managing long-term debt service obligations.
The first tranche consists of a five-year fixed-rate loan provided by a regional bank. This senior mortgage sits in the primary position in the capital structure and is sized as part of a broader permanent financing solution for the resort. Although specific rate and leverage terms were not disclosed, the fixed-rate feature establishes stability for the initial hold period following the acquisition.
The second component of the financing is a 25-year SBA 504 loan funded through a Certified Development Company. This SBA 504 piece is structured in a second-lien position behind the regional bank loan. Both the bank loan and the SBA 504 loan are reported to carry 25-year amortization schedules, aligning repayment across the two layers of debt despite their differing terms and positions in the stack.
According to Gantry, pairing the regional bank financing with the SBA 504 execution allowed the sponsor to access a lower overall cost of capital than would have been achievable with a traditional mezzanine debt structure in the second position. The CDC-funded SBA 504 tranche, secured by a second lien, effectively replaces higher-cost subordinate capital with longer-term, fixed amortizing debt.
The transaction underscores the continued availability of bank and SBA 504 financing for hospitality assets that meet program criteria, including destination properties such as Tubac Golf Resort & Spa. By combining a regional bank loan with SBA-backed funding, the sponsor is able to finance the acquisition of a large, amenitized resort property with a structure that emphasizes both duration and cost efficiency within the capital stack.
