JLL Capital Markets worked on behalf of EKN Development Group to secure financing for the 215 key hotel
JLL Capital Markets announced today that it arranged a total of $67.1 million in construction financing for the development of the 215-key, duel-branded hotel, Marriott Courtyard Residence Inn in Sand City, California.
JLL represented the borrower, EKN Development Group and Garn Development, and secured the first mortgage loan of $39 million from HALL Structured Finance, and Nuveen Green Capital provided a CPACE loan of $28.1 million.
The 139,660-square-foot building will include 215 guest rooms. The Courtyard by Marriott includes 127 guestrooms and features the brand’s clean lines, combining beach style with a modern feel. The Residence Inn by Marriott includes 88 rooms designed for the longer-stay guest. The development will feature 3,133 square feet of flexible meeting space, a spacious courtyard with a resort style pool, luxurious cabanas and a fully equipped stage to accommodate live performances and events. The hotel will also include an epicurean experience with an independently branded restaurant and bar.
The property is located along the scenic coast of Sand City, California. With its prime location, the property benefits from its proximity to Monterey State Beach and Cannery Row. As the only new select-service/extended-stay hotel in the area, it takes advantage of the steady demand generated by attractions such as the Monterey Bay Aquarium, Laguna Seca Raceway, world-class golf courses and stunning landscapes that attract visitors from all over the world.
“In this economic climate and inherent stricter loan requirements, the demand for innovative financing methods and sources are crucial to the success of all projects. Working with the JLL team has always presented viable alternatives and we just closed our second deal with them in Sand City,” said Ebbie Khan Nakhjavani of EKN Development. “JLL’s approach to creative financing was a game-changer for our project in Sand City, particularly in these difficult economic conditions.”
“We at Nuveen Green Capital are very much excited about the proposed project and have great confidence in its success. This transaction is another example of a growing list showing how C-PACE can be used to offer an accretive financing solution for owners and developers,” added Cory Jubran of Nuveen Green Capital.