EKN development and Garn development Secured $67.1 million in construction financing to build 215 Keys Marriott Courtyard Residence Inn Located in Sand City, California
whole structured finance provided a first mortgage of $39 million; Nuveen Green Capitala subsidiary of Nuveen, provided $28.1 million in C-PACE loans, a type of low-cost financing for developers building energy-efficient projects. JLL Capital Market Arranged funding on behalf of sponsors.
Ebby Khan NahajavaniEKN Development's CEO said the construction loan is the second real estate transaction his company has signed with JLL Capital Markets.
“JLL's approach to creative financing was a game changer for our project in Sand City, especially in these difficult economic times,” he said in a statement.
Corey JubranThe senior director of originations at Nuveen Green Capital said his company is confident of the project's success with the use of C-PACE financing.
“This transaction is one example of a growing list of ways C-PACE can be leveraged to provide incremental financing solutions to owners and developers,” Jubran said in a statement.
Located in Sand City, just steps from Monterey State Beach and the famous “Cannery Row” immortalized by John Steinbeck. The Marriott Courtyard Residence Inn will occupy 138,000 square feet. The hospitality facility will include 3,000 square feet of meeting space, 2,400 square feet of dining, a 1,700 square foot fitness facility, and 227 parking spaces.
Approximately 127 rooms will be reserved for short-term stays and 88 rooms will be designed by Marriott for long-term stays. Amenities include a courtyard, outdoor pool, cabanas, and a stage to host live shows and events.
Construction is expected to begin in the first quarter of 2024 and be completed in the third quarter of 2025.
Nuveen and HALL Structured Finance did not respond to requests for comment.
Brian Puskas can be contacted at: bpascus@commercialobserver.com
