As the clock was ticking on the impending foreclosure of Legacy Sports Arena and the adjacent hotel on Oct. 13, the arena’s owner was working at a frenetic pace to salvage the half-completed project he began more than three years ago east of I-17 along Sonoran Desert Drive.
At the final hour, Legacy owner Rob Eaton told Valley Vibe he negotiated and purchased a two-week extension on the deed of trust sale, which allowed him the time to secure a $10-million bridge loan from SMS Financial, a privately held Phoenix-based firm specializing in commercial lending.
“God has a plan and I believe SMS Financial was a big part of that in saving the project,” Eaton told Valley Vibe in a phone interview.
Subcontractors have since been paid with funds from the bridge loan, and liens have been released on the arena and hotel, according to documents filed with Maricopa County Recorder’s Office.
While the bridge loan helped clean up the title, inching Eaton’s goal for a world-class sports venue closer to the finish line, obstacles still lie ahead for the local entrepreneur.
Before construction can resume on the project, an additional $46 million is needed to complete the arena, Eaton said, adding that he currently has a commitment from a lender for $34 million, but is still aggressively seeking a $12-million equity investor.
Until all funding is secured through either a loan for the full amount, or by way of an additional investor, the project will remain at a standstill, he said.
Securing continued funding during COVID has been the biggest challenge Eaton has faced. Prior to the pandemic, construction on both the arena and hotel was steadily progressing. It was at the 10-month mark in April 2020 when the pandemic brought work on the project to a sudden halt. And as the sports and leisure industry became severely impacted by government-imposed lockdowns, continued funding became nearly impossible to secure.
However, Eaton is optimistic that with COVID becoming less of a challenge in the lending community, construction can resume soon.
“The prospects look brighter and I’m greatly encouraged we’ll find the final funding pieces to bring the project to fruition,” he said.
If funding can be secured by the end of 2021, construction could resume in January with an opening in late fall 2022, Eaton added.
See previous article: “Foreclosure Looms on Half-Completed Sports Arena“.