JLL arranges $265M refinancing for master-planned beach resort in Southern California
On January 25, 2022, JLL's Capital Markets group announced a $265 million refinancing of a master-planned beach resort in Oceanside, California. The resort features 387 keys, including the 161-key Mission Pacific boutique hotel and the 226-key Seabird Resort. JLL represented S.D. Malkin Properties to secure a floating-rate, interest-only loan through ACORE Capital. The refinance will facilitate cost savings and flexibility while retiring previous construction loans. This move underscores the rising appeal of Oceanside's hospitality market.
- Secured $265 million refinancing to enhance liquidity and operational flexibility.
- Retirement of previous construction loans, improving financial health.
- Strong demand for coastal hospitality assets in Oceanside, validated by new financing.
- None.
SAN DIEGO, Jan. 25, 2022 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged a
JLL represented the borrower, S.D. Malkin Properties, to secure the floating-rate, interest-only loan through ACORE Capital. The JLL team has been involved with the project since inception and arranged construction financing for the resort in 2018. Proceeds from this refinance were used to retire that construction facility, including a significant mezzanine loan. The new loan will provide cost savings, term and flexibility for the sponsor.
"The financing is a great validation of the bespoke hotels that have been created and Oceanside's rising 'cool factor'," said Jeremy Cohen, Senior Vice President of S.D. Malkin Properties.
"The Mission Pacific and The Seabird hotels are very high-quality assets in an up-and-coming market in Oceanside, California," added Kyle Jeffers, Senior Managing Director and Co-Head of Originations at ACORE Capital. "The S.D. Malkin Properties team is 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-oriented hotels are located on a premier 2.75-acre, two-block site spanning 700 feet of beachfront real estate. Operated by Hyatt, both hotels offer ocean views, direct beach access, an entire ecosystem of food and beverage experiences, interior meeting and function space, two pools with views of the Pacific, and access to some of the best surfing on the California coast. The site also features the historic 1887 beach cottage featured in the Top Gun movie, which will open soon 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 the transformation of downtown Oceanside into the iconic destination that it once was in the early 20th century. The hotels are located four minutes from Interstate 5, connecting the properties with local and regional guests throughout 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' beach front location is a significant barrier-to-entry given strict zoning constraints and the lack of entitled and developable oceanfront land in Southern California. The hotels are further bolstered by the strong lodging market fundamentals in San Diego. San Diego has continually proven to be a top-tier lodging market, supported by a diversified base of lodging demand from group business, leisure demand centered upon the world-renowned beaches, exclusive sporting venues and various theme parks and a well-established corporate base in the life science, technology and defense sectors.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Timothy Wright and Director Olga Walsh in coordination with the JLL Hotels & Hospitality team.
"We are very excited to have been a part of the capitalization on this iconic waterfront property, which is transforming North San Diego County and providing a valuable complement to the SoCal hospitality offering," said Wright.
"The capital markets responded well to the opportunity to finance this prime asset for a strong sponsorship group, which resulted in a competitive marketing process and ultimately favorable terms for our client," added Walsh.
JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a 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 with the California Department of Real Estate, license #01223413.
About S.D. Malkin Properties
S. D. Malkin Properties creates, owns and operates iconic, experiential real estate destinations that attract high spending global shoppers. S. D. Malkin Properties has consistently delivered leading retail, entertainment and hospitality projects throughout North America, Europe and Asia.
S. D. Malkin Properties works in partnership with significant stakeholders such as governments and leading corporations to deliver complex, location defining projects.
S. D. 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
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of
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