Los Angeles – CBRE arranged $15.5 million in financing for the development of a five-story extended-stay hotel in Garden Grove, Calif.
Bruce Francis, Dana Summers, Doug Birrell, Bob Ybarra, Shaun Moothart and David Stinebaugh facilitated the loan on behalf of the private buyer, Garden Grove Hotel, LLC. The debt has an 18-month floating period during construction and will subsequently convert into fixed interest rate loan for 36 months with two one-year extension options. The lending amount represents 73.5 percent of total project costs.
The site, located at 13650 Harbor Boulevard, is under construction and set to be completed in late 2020. The extended stay Homes2Suites hotel will include 124 rooms.
“The market for high leverage hotel construction financing is pretty thin,” said Moothart. “The capability of our team to create a competitive market and identify the outlier bidder prevailed, and we look forward to repeating this process with this sponsor on future deals.”
Birrell added, “This development will enable the sponsorship group to expand its hotel portfolio beyond the southeastern United States. We are excited to facilitate the group’s entrance into the dynamic Southern California hospitality sector.”
Hotel demand increased 2.4 percent nationally in the first quarter, according to CBRE Q1 2019 U.S. Hotel Figures report. The pace of supply growth increased year-over-year to 2 percent and national occupancy growth was 0.4 percent year-over-year, setting a new first-quarter occupancy record of 61.8 percent.
Bruce Francis, Dana Summers, Doug Birrell, Bob Ybarra, Shaun Moothart and David Stinebaugh facilitated the loan on behalf of the private buyer, Garden Grove Hotel, LLC. The debt has an 18-month floating period during construction and will subsequently convert into fixed interest rate loan for 36 months with two one-year extension options. The lending amount represents 73.5 percent of total project costs.
The site, located at 13650 Harbor Boulevard, is under construction and set to be completed in late 2020. The extended stay Homes2Suites hotel will include 124 rooms.
“The market for high leverage hotel construction financing is pretty thin,” said Moothart. “The capability of our team to create a competitive market and identify the outlier bidder prevailed, and we look forward to repeating this process with this sponsor on future deals.”
Birrell added, “This development will enable the sponsorship group to expand its hotel portfolio beyond the southeastern United States. We are excited to facilitate the group’s entrance into the dynamic Southern California hospitality sector.”
Hotel demand increased 2.4 percent nationally in the first quarter, according to CBRE Q1 2019 U.S. Hotel Figures report. The pace of supply growth increased year-over-year to 2 percent and national occupancy growth was 0.4 percent year-over-year, setting a new first-quarter occupancy record of 61.8 percent.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
