RANCHO PALOS VERDES, CA-Lowe Enterprises and JC Resorts have obtained a new $220 million first mortgage loan on its 582-room Terranea oceanfront resort.
The refinancing was secured before existing loans were due to mature and replaces all previous loans on the property. Eastdil Secured brokered the transaction.
Terranea Resort is situated on 102 acres of coastline just south of Los Angeles International Airport. The property was developed by Lowe Enterprises and is owned by a joint venture of Lowe and JC Resorts.
In addition to the 400-room hotel and oceanfront bungalows, Terranea offers ownership in 32 private Ocean Villas and 50 Ocean Casitas, ranging in size from 1,850 square feet to 2,800 square feet.
“We appreciate Cornerstone’s confidence in providing the new financing for Terranea Resort,” said a statement from Robert J. Lowe, Jr. co-president of Lowe Enterprises. “Terranea is truly a one-of-a-kind property that has become a favored destination for leisure and business travelers, groups and the local community. Cornerstone understands Terranea’s operating model and was able to be flexible in loan terms to allow us to optimize the Resort’s performance.”
“Terranea brought Cornerstone an opportunity to provide our client with a significant investment opportunity collateralized by a resort that demonstrates ramping performance, robust group bookings and high-quality facilities and amenities,” said a statement from Jamie Henderson, managing director of Cornerstone’s Alternative Investments Group.
Terranea Resort opened in May 2009. Gross revenue is reported up 58% since 2010, and revenue per available room increased 16% in 2012 over the prior year, according to the firms. Terranea is operated through Lowe’s hospitality management subsidiary, Destination Hotels & Resorts.
As reported earlier by GlobeSt.com, Peter S. Morgan joined Lowe as SVP. He will lead the company’s commercial property acquisitions in the Western US.