Hotel - ConstructionJUNE 25, 2019
ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, today announced that it originated a $43.5 million bridge loan to complete the construction and stabilization of the Le Meridien by Marriott International hotel in Arcadia, California. The loan, which carries a term of 24 months, is sponsored by veteran investors Eric Chen and Wen Fei Shen.
“This loan represented an attractive opportunity to provide our flexible capital solution to highly capable and experienced sponsors in the Los Angeles County market,” said ACRES Chief Executive Officer and President Mark Fogel. “The project is in line with our approach of investing in developments with sound fundamentals, combining the strength of a widely recognized, national brand with a decidedly sought-after travel destination in one of America’s largest gateway cities.”
Located at 130 West Huntington Drive in the San Gabriel Valley, just northeast of downtown Los Angeles, the Le Meridien by Marriott International will be a full-service, four-star hotel encompassing 233 rooms. It will feature several amenities for guests, including a 5,000-square-foot ballroom, outdoor and meeting spaces, and lounge. The hotel will benefit from its proximity to tourist attractions such as the Santa Anita Racetrack, Santa Anita Golf Course, Los Angeles County Arboretum and Botanic Garden, and numerous food and beverage outlets in the immediate area. The sponsors chose ACRES for its national hospitality experience and certainty of execution.
“ACRES recognized the potential and prime location of this development and provided an adaptive financing solution to move the hotel toward completion,” said sponsors Chen and Shen. “Its national experience with hospitality projects, deep knowledge and efficient process provided us with the due diligence necessary to adhere to our timeline and budget. This facility will further establish the Le Meridien arm of Marriott International hotels and will bring a stylish, modern option to the market for guests to continually enjoy.”
“This transaction contributes to our strategy of lending to the middle market,” Fogel continued. “As we build upon our recent growth, we continue to look at a multitude of projects, property types and initiatives to reinforce ACRES as a trusted lender for a variety of borrowers.”