SAN DIEGO, January 25, 2022 /PRNewswire/ — JLL’s Capital Markets Group today announced that it has held a $265 million refinancing of a planned resort of 387 keys to ocean side in North County San Diego, California. The resort includes the 161-key Mission Pacific boutique hotel and the 226-key Seabird Resort, a full-service resort.
JLL represented the borrower, SD Malkin Properties, to secure the variable rate, interest-only loan through ACORE Capital. The JLL team has been involved in the project since its inception and arranged financing for the construction of the complex in 2018. Proceeds from this refinancing were used to retire this construction facility, including a large mezzanine loan. The new loan will provide cost savings, duration and flexibility to the sponsor.
“The funding is a great validation of the bespoke hotels that have been created and By the ocean “cool factor” on the rise,” said Jeremy CohenSenior Vice President of SD Malkin Properties.
“The Mission Pacific and The Seabird hotels are very high quality assets in a buoyant market Oceanfront, California,” added Kyle Jeffers, Senior Managing Director and Co-Head of Originations at ACORE Capital. “The team at SD Malkin Properties are a world-class sponsor, and we are honored to work with them and JLL on the financing.”
Completed in May 2021, the adjacent world-class, design-focused hotels are situated on a prime two-block 2.75-acre site covering 700 feet of oceanfront land. Managed by Hyatt, both hotels offer views of the ocean, direct beach access, an entire ecosystem of dining and beverage experiences, indoor meeting and banquet space, two pools with views of the Pacific, and access to some of the best surf spots on the California rating. The site also includes the historic 1887 beach cottage featured in the Superior gun movie, which will soon open as a nostalgic dessert bar.
Mission Pacific and Seabird have easy access to the historic Oceanside Pier and downtown cultural attractions, such as the Oceanside Museum of Art and the California Surf Museum. They play an important role in continuing to transform downtown Oceanside into the iconic destination it once was in the early 20and century. The hotels are located four minutes from Interstate 5, connecting properties to local and regional guests around the world. San Diego, Orange, Riverside and Los Angeles counties. Amtrak’s Surfliner and Metrolink with links to Los Angeles and Orange County are less than two blocks away.
The properties’ beachfront location is a significant barrier to entry given the strict zoning constraints and lack of licensed and developable beachfront land in Southern California. Hotels are further supported by the strong fundamentals of the accommodation market in San Diego. San Diego has continually proven to be a leading accommodation market, supported by a diverse base of accommodation demand from group businesses, leisure demand centered around world-renowned beaches, exclusive sports venues and various theme parks and a well-established business base in the life sciences, technology and defense sectors.
The JLL Capital Markets team representing the borrower was led by the Senior Managing Director Timothy Wright and director Olga Walch in coordination with the JLL Hotels & Hospitality team.
“We are very pleased to have participated in the capitalization of this emblematic waterfront property, which is transforming North San Diego County and provide a valuable addition to the SoCal hospitality offering,” Wright said.
“The capital markets reacted well to the opportunity to fund this prime asset for a strong sponsor group, resulting in a competitive commercialization process and ultimately favorable terms for our client. “Walsh added.
JLL’s Capital Markets Group is a global, full-service provider of capital solutions for real estate investors and occupiers. The firm’s deep knowledge of the local market and global investors provides best-in-class solutions to its clients, whether it is sales and investment advisory, debt advisory, equity advisory or recapitalization . The firm has more than 3,000 capital markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. (“JLL”) is a Real Estate Broker licensed by the California Department of Real Estate, license number 01223413.
About SD Malkin properties
SD Malkin Properties creates, owns and operates iconic, experiential real estate destinations that attract high-spending global buyers. SD Malkin Properties has consistently delivered premier retail, entertainment and hospitality projects throughout North America, Europe and Asia.
SD Malkin Properties works in partnership with important stakeholders such as governments and large corporations to deliver complex, location-defining projects.
SD Malkin Properties, through Value Retail PLC, creates and operates luxury experiential shopping destinations in Europe and Asia.
About ACORE Capital
ACORE Capital, LP is one of the largest investment managers focused on commercial real estate lending with approximately $17 billion of assets under management. With offices at San Francisco, Los Angeles, dallas, Miami Metro and New York, ACORE originates, acquires and manages first mortgage loans, B-notes, mezzanine debt and preferred shares. Led by commercial real estate finance veterans and co-CEOs Warren deHaan and Chris Tokarsky, ACORE’s success has been fueled by its longstanding industry relationships and access to a steady pipeline of compelling origination opportunities. For more information, please visit www.acorecapital.com.
JLL (NYSE: JLL) is a leading professional services firm specializing in real estate and investment management. JLL is shaping the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, incredible spaces, and sustainable real estate solutions for our clients, associates, and communities. JLL is a Fortune 500 company with annual revenue of $16.6 billionoperations in over 80 countries and a global workforce of over 95,000 people September 30, 2021. JLL is the brand name and a registered trademark of Jones Lang LaSalle Incorporated. For more information, visit jll.com.
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