JLL Capital Markets has arranged a total of $67.1 million in construction financing for the development of the 215-key, dual-branded Marriott Courtyard Residence Inn in Sand City, CA.
JLL represented the borrower, EKN Development Group and Garn Development, and secured the first mortgage loan of $39 million from HALL Structured Finance. Nuveen Green Capital provided a CPACE loan of $28.1 million.
The 139,660-sq.-ft. building will include 215 guestrooms. The Courtyard by Marriott includes 127 guestrooms and the Residence Inn by Marriott includes 88 rooms. The development will feature 3,133 sq. ft. of flexible meeting space and a courtyard with a resort-style pool, 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 will be located near Monterey State Beach and Cannery Row. As the only new select-service/extended-stay hotel in the area, it will take advantage of the demand generated by attractions such as the Monterey Bay Aquarium and Laguna Seca Raceway.
“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,” said Ebbie Khan Nakhjavani, founder/CEO, EKN Development. “Working with the JLL team has always presented viable alternatives and we just closed our second deal with them in Sand City. JLL’s approach to creative financing was a game-changer for our project in Sand City, particularly in these difficult economic conditions.”
Cory Jubran, senior director. West Coast originations, Nuveen Green Capital, added, “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.”
