AVANA Capital Provides $60 Million Construction Loan for Marriott Courtyard and TownePlace Suites in Hawthorne, CA
GLENDALE, Ariz., Jan. 22, 2018 /PRNewswire/ — AVANA Capital closed a $60 million construction loan to Mogul Capital, LLC, providing funding to develop with modular construction a dual-branded Marriott Courtyard and TownePlace Suites hotel located in downtown Hawthorne, California. The property will have five stories, 354 guest rooms, a restaurant, swimming pool and other business amenities such as meeting space for corporate and community functions.
It will be the first hotel in downtown Hawthorne and close to several aerospace-related businesses including SpaceX, and Northrup Gruman, as well as Tesla’s design HQ, Boeing, Aerospace Corp, Raytheon, LA Airforce Base, Mattel, and many corporate airline offices; which all have significant operations within 2 miles of the site. The location is also within five miles from Los Angeles International Airport (LAX), the fourth busiest airport in the world serving more than 80 million passengers a year.
“There is a great demand for a quality limited-service hotel in this location,” said Brad Wagstaff, President of Mogul Capital. “The combination of a Marriott Courtyard, a TownPlace Suites and the unique mix of rooms is ideal in this location and we were very pleased that we found in AVANA Capital a partner that believes in our vision and has the understanding of conventional and modular construction for a large project like this one.”
The dual branded hotels are expected to create over 80 permanent jobs, as well as help support other Hawthorne-area businesses, and generate an economic multiplier effect for the surrounding businesses during construction and after opening.
The project brings together the construction expertise of Lusardi Construction Company, based in California, and the modular construction expertise of Guerdon Modular Buildings, based in Boise, Idaho, where fully furnished guestrooms will be constructed off-site in a controlled environment. Using Guerdon’s modular construction is expected to reduce the construction timeline by approximately six months. Modular construction has significantly higher STC ratings and reduced noise transmission levels from room to room, which will contribute to positive guest experiences.
“When Mogul was looking for a lender experienced with modular, we immediately connected them with Sanat Patel, CSO of AVANA Capital,” said Jerry Goodwin, CEO of Guerdon Modular Buildings “We’ve had great experiences with AVANA Capital, and we knew that they were a great fit for this deal.”
Mogul Capital partnered with AVANA Capital due to their understanding of conventional and modular construction for a large project resulting in a $50 million conventional loan and a $10 million mezzanine loan with above market leverage. “Mogul Capital has proven expertise in developing high quality assets, and we are excited to assist in their ongoing growth,” explained Matt Hunt, Chief Credit Officer at AVANA Capital. “Additionally, we had previously worked with Guerdon on modular construction projects and we had experienced first hand the added value in terms of time, money and quality that they bring to the table.”
About AVANA Capital:
With roots dating back to 2002, and more than $1 billion in loans nationwide, AVANA Capital is a commercial real estate debt fund that offers private commercial real estate loans nationwide by sourcing funds from an array of accredited global investors. We leverage our expertise by lending in niche industries such as hospitality, solar and assisted living facilities and are committed to protecting our investor’s capital by subjecting our investments to a meticulous review process. For our borrowers, once we commit our funds to a project we guarantee certainty of execution in closing and funding. Above all, we believe in strong values embedded in the way we conduct our business as a team, through our employees and management. For more information, visit www.avanacapital.com.
About Guerdon Modular Buildings
Guerdon is the leading manufacturer of large-scale, complex modular construction projects and modular multi-family housing developments in the Western United States. Guerdon’s innovative modular construction technology reduces build time and construction impacts while delivering significant improvements in quality, energy efficiency, noise reduction and cost-effectiveness when compared to on-site building methods. Guerdon’s construction experience, engineering, design expertise and manufacturing capacity is unrivaled in the industry. For more information, please visit www.guerdon.com.
About Mogul Capital
Mogul Capital was formed in 2005 as a specialty real estate development fund focused on opportunistic development and investment transactions. Since inception, Mogul Capital has acquired, developed and invested in more than $125 million in real estate projects and approximately $245 million in equity, debt and sale-leaseback financings. Mogul Capital is a Marriott and Hilton approved franchisee. For more information, please visit www.mogulcapital.com.
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SOURCE AVANA Capital