Quantcast

The Real Deal Los Angeles

Landmark Cos. secures $71M mortgage on Hilton hotel near Disneyland

At least $16M will finance a 5-year renovation plan
By Dennis Lynch | December 05, 2018 02:10PM

The Embassy Suites by Hilton Anaheim – South hotel

Landmark Companies scored a $71 million refinancing loan for an Anaheim hotel.

The majority of the debt will be used to pay off existing loans on the 375-key Embassy Suites by Hilton Anaheim – South in Garden Grove. About $16 million will pay for a five-year renovation plan for the 17-year-old hotel near Disneyland.

Deutsche Bank provided $56 million as a senior mortgage. New York-based Artemis Real Estate Partners financed the additional $17 million as a junior mezzanine loan.

Marc Sallette, Olga Lepow, Cara Leonard, and Charlie Ryan of CBRE Hotel’s debt and structured finance team arranged the debt.

The hotel is about a mile away from Disneyland, the center of a swirling storm of hotel drama in Anaheim. A spat between the Walt Disney Company and the city of Anaheim led Disney to drop plans to build a 700-room high-end hotel near the famous theme park in October.

The conflict started when Disney tweaked plans and moved the location of the hotel, after the city agreed to a $267 million tax break for the project. The city argued the new location didn’t qualify for the tax break.