Madison Realty Capital Provides $110M Refi for Silicon Valley Hotel

Ensemble Investments has secured $110 million to refinance Hotel NIA, a 250-key Marriott hotel in Menlo Park, Calif., Commercial Observer can first report. 

Madison Realty Capital worked with Newbond Holdings to provide the debt. David Sonnenblick of Sonnenblick-Eichner Company arranged the deal. 

Josh Zegen, co-founder and managing principal at Madison Realty Capital, described Hotel NIA as “a high-quality, cash-flowing asset with institutional sponsorship and proven brand affiliation,” while noting in a statement that the asset is supported by the positive demand fundamentals across Menlo Park. 

Zegen noted that Menlo Park commercial real estate has benefited from the return-to-office policies instituted across Silicon Valley by tech firms, as well as from the lack of supply for hospitality assets in the area. Hotel NIA is currently the only full-service hotel within the 15.9-acre Menlo Gateway campus. 

“The proximity of major corporate and institutional demand generators like Meta, Snowflake and Stanford University creates a structural tailwind that gives us strong conviction in this asset’s trajectory,” said Zegen. “We believe [the property] is well positioned to outperform.” 

Located at 200 Independence Drive in Menlo Park, Hotel NIA operates under Marriott’s Autograph Collection brand. The hotel features 241 regular rooms, nine suites and more than 15,000 square feet of meeting and event space — notably a nearly 5,000-square-foot ballroom — along with 301 valet parking spaces.  

Neil Luthra, founding partner of Newbond Holdings, said in a statement that Hotel NIA has displayed “strong fundamentals” while being under sponsorship of Ensemble’s institutional ownership.  

“The location, coupled with the modern, high-end design, and Ensemble’s deep operational experience, positions the asset for continued strong performance,” he added. 

Brian Pascus can be reached at bpascus@commercialobserver.com.