HALL Structured Finance Closes USD 42M Construction Loan To Build Two Cambria Suites
DALLAS, Aug. 16, 2017 : HALL Structured Finance (HSF) announced today that the company has closed two new first lien loans totaling USD 42 million to finance the construction of two Cambria Suites in California - one in Sonoma County and one in Napa Valley.The project developers are Newport Beach, California - based David and Andrew Wood of Stratus Development Partners LLC (SDP), and construction is expected to begin in September 2017.
"The strength of tourism in the Napa Valley and Sonoma wine industries will be a major demand generator for these hotels," said Mike Jaynes, president of HALL Structured Finance. "There are very few sites left in the region that are entitled for hotel development, and we are confident that these Cambria products will be very successful in the area's current hotel market."
HSF arranged a $19.8M first lien construction loan to develop the Cambria Suites in Napa, a 90-room hotel centrally located at 320 Soscol Avenue, just 1.5 miles south of Downtown Napa. Projected to open in 2019, the four-story hotel will feature a restaurant, outdoor pool, fitness center, guest laundry facilities, business center, sundry shop, and approximately 2,012 square feet of meeting space.
For the Cambria Sonoma, HSF is providing a $22.1M first lien construction loan for the development, which will feature 135 keys and is located at 5870 Labath Avenue, Rohnert Park, next to several wineries and within a few miles from Sonoma State University and the Graton Resort & Casino. The Sonoma Cambria Hotel will have the same build, aesthetics, appeal and amenities as the Napa Cambria and is also projected to open in 2019.
"Securing construction financing in today's regulated banking climate can be difficult to say the least. HSF worked with us diligently every step of the way to find a capital solution that worked for our unique needs and they went above and beyond to secure both loans so that our team could begin construction," said David Wood, the project developer with SDP.
Scott Silver, chairman of Hospitality Funding Inc. and Silver & Associates LLC, brokered the loans.
Cambria Hotels & Suites entered the market as an all-suite, new construction hotel design in 2007. Today, there are currently 30 Cambria properties open across the U.S. with over 60 more under development or deals executed in the U.S. and Canada.