RANCHO PALOS VERDES, CA-New and existing investors havecommitted $100 million in new capital that will provide for thelong-term stability of the 102-acre, 582-room Terranea oceanfrontresort developed and owned by Los Angeles-based Lowe Enterprises.The transaction includes an extension of the loans on the propertyin addition to the new capital commitments by a combination of newand existing investors in a new joint venture with JC Resorts, aSan Diego hospitality company with 40 years of resort and golfexperience in Southern California. Affiliates of ST Residential LLChold the loans on the property and are participating in the newcapital commitment.

In addition to being the primary lender, ST Residential hasacquired the mezzanine loan on the property, according to Robert J.Lowe, chairman and CEO of Lowe Enterprises. “With this newpartnership in place, Terranea is well-positioned to take advantageof the continuing improvement in the hotel and residentialmarkets,” the Lowe CEO said in a prepared statement.

Lowe’s announcement of the new financing says that thetransaction “effectively eliminates any uncertainties aboutTerranea following the FDIC takeover of its original constructionlender, Corus Bank, the subsequent acquisition of Terranea’s loanby ST Residential, and the challenges resulting from therecession.”