Developer Chateau Group USA scored a $43.5 million bridge loan to complete the construction of a new four-star hotel in Arcadia, The Real Deal has learned.
Acres Capital provided the financing, which carries a term of two years. The borrowers were Chateau’s Eric Chen and Wen Fei Shen, according to Acres.
Once completed, the Le Meridien by Marriott International hotel will have 233 guest rooms, a 5,000-square-foot ballroom, a rooftop pool with bar and several lounges.
The hotel, at 130 West Huntington Drive, is expected to open in July 2020. Architects Orange is designing the development, which will sit on a 6-acre property near the historic Santa Anita Race Track.
In a statement, the borrowers said they chose Acres because of its “national experience with hospitality projects.”
Mark Fogel, CEO of Acres, said the deal falls in line with the firm’s strategy of lending to the “middle market.” The New York-based firm specializes in bridge and mezzanine loans.
Hotel construction has remained one of the strongest real estate sectors in L.A. County for several years, fueled in part by a robust tourism industry. Last year, a record 50 million visitors to the county helped pump $36.6 billion into the economy. While the pace of development has slowed a bit, L.A. is still adding more hotel rooms than any other part of the state.