FOR IMMEDIATE RELEASE
Contact: Vincent Aviani / Chris Egger
Macy + Associates
(415) 954-8550
vaviani@macyinc.com
BUCHANAN STREET PARTNERS SECURES $18 MILLION FINANCING DEAL TO CEMENT ACQUISITION OF TEMPE, ARIZONA'S FIESTA INN
Gustin Property Group and Driftwood Hospitality Management Form Joint Venture To Purchase Landmark 270 Room Property; Ownership Team Plans Significant Improvement to Property Including New Conference Facility
Tempe, AZ (January 4, 2006) - Buchanan Street Partners, a real estate investment bank
successfully secured $18.25 million non-recourse bridge loan on behalf of CDG Tempe LP, a joint venture
between Gustin Property Group and Driftwood Hospitality Management, for the purchase of the Fiesta Inn
in Tempe, Az., according to John P. Manning, vice president with the San Francisco office of Buchanan
Street Partners.
"The Fiesta Inn is a well-known hotel that has been owned by the same company for 30 years and was
showing visible signs of wear and tear. Our client and their investment partner - Driftwood - saw
a significant investment opportunity to acquire the 270 key properties and add value through a
focused rehabilitation program," said Manning. "Approximately $8 million will be used to improve
the accessibility and visibility of the property, relandscape the property, and construct a new
30,000 square-foot conference center that will create a much nicer hotel environment."
The Fiesta Inn is located at 2100 South Priest Drive between Phoenix and Scottsdale, near Arizona
State University and the Phoenix Airport with onsite amenities that include an oversized pool, tennis
courts, and lush mature landscaping.
The non-recourse loan for the transaction was supplied by Legg Mason REI, and was the second
transaction structured by Buchanan Street Partners involving both the lender and Gustin Property
Group. The first transaction involved the successful purchase of River Terrace in Napa last year
by Gustin.
Buchanan Street Partners offers a team of knowledgeable debt & structured finance professionals who are
specialists in advising on a wide range of capital strategies including: fixed rate loans, construction
loans, forward commitments, mezzanine loans, floating rate loans, bridge financing, participating debt,
and joint ventures. In every transaction, Buchanan Street Partners identifies a client's unique finance
requirements, pairing that need with the appropriate institutional capital source and loan structure.
Since founding the company in 1999, Buchanan Street Partners has completed more than $7 billion in
commercial real estate investments and finance transactions as a principal investor or client advisor.
The company built its reputation as one of the top real estate investment banking operations focusing on
the markets of the western United States. In 2005, the company expanded its capabilities to serve the
national marketplace, primarily in its principal investment capacity and self-storage finance specialty.
The Buchanan Street Partners' hallmark is a uniquely entrepreneurial spirit and operating platform,
fashioned by experienced, ethical and passionate individuals working within a supportive team
structure and corporate environment.
About Buchanan Street Partners…
Buchanan Street Partners is a real estate investment bank that
provides real estate capital for owners and developers. The firm makes principal equity investments
for real estate in a discretionary capacity, arranges debt and structured finance, is an investment
manager to institutional and private investors, offers investment sale brokerage services, and has
a specialty in self-storage finance. Buchanan Street Partners operates from offices in Newport Beach,
Los Angeles, San Francisco, Chicago and Atlanta.
