Dealmaker: Hall Structured Finance Lends $72M for Hotel Construction
Michael Tucker firstname.lastname@example.org
Hall Structured Finance, Dallas, closed two construction loans totaling $72.3 million for hotels in California and South Carolina.
In Palm Springs, Calif., Hall Structured Finance closed a first-lien construction loan totaling $55 million for a 150-room Hyatt Andaz resort hotel with accompanying retail. Rael Development Corp., Newport Beach, Calif. plans to open the property by January 2019.
Hall Structured Finance President Mike Jaynes said Hyatt's Andaz brand is an upscale boutique-inspired hotel. Instead of a central structure, the Andaz Palm Springs will include a collection of small buildings and guestroom bungalows surrounding two outdoor pools. The 30,000-square-foot street-level retail portion of the project, The Shops on Palm Canyon, will be leased to restaurants, clothing shops, boutiques and galleries.
This loan represents the fourth construction loan Hall Structured Finance closed in California this year, including a $26 million construction loan for the Park James Hotel in Menlo Park and a $42 million loan to develop two Cambria Suites in Napa Valley and Sonoma County.
Hall also loaned $17.3 million to a joint venture between RREAF Holdings, Dallas, and Upland Lodging, Savannah, Ga., to construct a 126-room Cambria Suites in Charleston, S.C. The project broke ground on a nearly three-acre site in October with an early 2019 opening scheduled.
"The growing popularity of visiting historic Downtown Charleston will be a major demand generator for this hotel," Jaynes said. "Charleston sees more than 5 million visitors per year, making it one of the leading tourism destinations in the nation."
The four-story hotel will be one mile across the bridge from Charleston's historic downtown district at the northwest corner of Highway 61 and Ripley Point.