Priority Capital Advisory Arranges $11.5M Refinancing of Former Hotel in Madison, Wisconsin

MADISON, WIS. — Priority Capital Advisory has arranged an $11.5 million loan for the refinancing of Vivo Madison, a 153-unit property at 517 Grand Canyon Drive in Madison. The borrower is a joint venture between REALM and OTR Real Estate. The partners acquired Vivo in April 2023, at which time the property was a Radisson Hotel. OTR specializes in the conversion of hospitality assets to multifamily. Since 2023, the owners have added kitchenettes to all the units and built out the amenity spaces. Vivo received its certificate of occupancy in January 2026 and is currently 56 percent leased. The community is comprised of 147 studio units and six one-bedroom units. Each unit features a full kitchenette with an electric range, microwave, refrigerator, air conditioning, Wi-Fi, cable ports and all utilities included for a flat monthly surcharge. Amenities include a clubhouse, indoor pool, fitness center, game room, coworking space, laundry facilities and outdoor lounge areas. The two-story asset is situated on approximately 4.5 acres adjacent to University Research Park, a 1.8-million-square-foot life sciences and technology corporate campus.   ...more

Leo's notes: Converting vacant hotels, offices, and other commercial properties into housing can often deliver new homes faster and at a lower cost than traditional construction while revitalizing underused real estate. This financing illustrates that preservation and conversion are not simply temporary solutions—they are viable long-term investments that help communities respond to housing shortages. As Wisconsin continues to face affordability challenges, successful projects like Vivo Madison demonstrate that creative redevelopment, supported by flexible financing, can complement new construction and provide another practical pathway toward increasing housing opportunities across the state.