10 Story Vacant Office to Courtyard by Marriott Conversion

Deal Summary

The Situation

An investor identified a vacant 10 story office building in downtown Temple, Texas as a conversion opportunity. The plan was to acquire the property and convert it into a Courtyard by Marriott, capitalizing on Temple's healthcare-driven demand from Baylor Scott & White and Fort Cavazos visitor traffic.

The Challenge

Vacant office buildings are among the hardest assets to finance. The property had no income, no tenants, and required a lender comfortable underwriting a hospitality conversion play in a secondary market. Most conventional lenders declined the deal outright.

The Structure

CapitalAx arranged a $7,400,000 bridge loan through a private lender, structured with interest-only payments to cover acquisition and pre-development costs for the Courtyard by Marriott conversion.

The Solution

CapitalAx positioned the deal around Temple's unique demand drivers, Baylor Scott & White's flagship hospital generating consistent medical travel, Fort Cavazos visitor demand, and the lack of branded select-service hotel inventory downtown. A private lender with hospitality conversion experience funded the acquisition.

The Outcome

The borrower closed on time, securing a landmark downtown property for the Courtyard by Marriott conversion. The project adds branded hotel inventory to a market with strong institutional demand drivers and limited competition.