Nuveen, HALL Structured Finance Provide $67M Loan for Sand City Marriott Inn
EKN Development and Garn Development are building the 215-key Marriott Courtyard Residence Inn
By Brian Pascus February 2, 2024 2:22 pm
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EKN Development and Garn Development have secured $67.1 million in construction financing to build the 215-key Marriott Courtyard Residence Inn in Sand City, Calif.
Hall Structured Finance provided the $39 million first mortgage, while Nuveen Green Capital, a subsidiary of Nuveen, provided a $28.1 million C-PACE loan, a type of low-cost financing for developers who build energy efficient projects. JLL Capital Markets arranged the financing on behalf of the sponsors.
Ebbie Khan Nakhjavani, CEO of EKN Development said the construction loan was the second deal on the property his firm had closed with JLL Capital Markets.
“JLL’s approach to creative financing was a game-changer for our project in Sand City, particularly in these difficult economic conditions,” he said in a statement.
Cory Jubran, senior director of originations at Nuveen Green Capital, noted that his firm is confident in the success of the project due to the use of C-PACE financing.
“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,” said Jubran in a statement.
Located in Sand City – just off Monterey State Beach and the famous “Cannery Row” immortalized by John Steinbeck — the Marriott Courtyard Residence Inn will span 138,000 square-feet. The hospitality property will include 3,000 square-feet of meeting space, 2,400 square-feet of dining, 1,700 square-feet of fitness, and 227 parking spaces.
Approximately 127 rooms will be reserved for short-term stay, while 88 rooms will be designed by Marriott for long-term guests. Amenities are to include a courtyard, an outdoor pool, cabanas, and a stage to host live shows and events.
Construction began in the first quarter of 2024 and is expected to be completed in the third quarter of 2025.
Nuveen and HALL Structured Finance did not respond to requests for comment.
Brian Pascus can be reached at bpascus@commercialobserver.com
