$212,250,000 Non-Recourse Senior Construction Financing for the Ground-Up Development of a Montage and Pendry Resort & Residences, La Quinta, CA

All terms of the financing are confidential.

Transaction Description:

George Smith Partners successfully placed $212,250,000 of non-recourse, senior construction financing for the development of a 240-key, dual-branded, 5-star Montage and Pendry resort in La Quinta California. The 525-acre project encompasses multiple construction and financing phases and will offer luxury residential and hospitality spaces. The Hotel and Residences are designed around a world-class Arnold Palmer golf course. The Project’s design aesthetic combines modern elements with classic desert architecture.

This initial financing includes a 140-key Montage Resort, a 200-key Pendry Resort, a shared-services building, and a golf club house as well as several Montage and Pendry branded residences and condominium units. The financing also included up to an additional $100MM of capital for the development of up to 29 Branded Montage Residences and 66 Branded Pendry Condominium Residences. Three additional planning areas that are currently contiguous with the development site will be sold off to third party homebuilders, with the proceeds from these land sales being recontributed into the Project.

GSP was able to source a lender who not only shared the Sponsor’s vision and passion for the Development, but also recognized the Sponsor’s ability to execute complex, large-scale master planned developments. Despite the complex takedown structure, GSP devised, planned and executed a creative structure that provided the Sponsor with sufficient loan proceeds, while minimizing the Lender’s risk profile throughout the development.

Advisors

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