Chateau Group scores $44M bridge loan to build Marriott-branded hotel in Arcadia

The borrowers were local investors Eric Chen and Wen Fei Shen of Chateau Group USA

Los Angeles /
Jun.June 14, 2019 02:00 PM
Acres Capital CEO Mark Fogel with a rendering of project
Acres Capital CEO Mark Fogel with a rendering of project

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.


Related Articles

arrow_forward_ios
Renderings of the Little Tokyo Service Center (KoningEizenberg) 
$275M approved for LA affordable housing projects
$275M approved for LA affordable housing projects
Josh Zegen and rendering of 21555 Oxnard Street (iStock, Google Maps)
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Photo illustration of Gov. Gavin Newsom and the Holiday Inn in Long Beach (Getty, Google Maps)
California spent $850M on inns for homeless
California spent $850M on inns for homeless
The Georgian at 1415 Ocean Avenue and The Viceroy at 9291 Burton Way (Google Maps)
An inhospitable market? LA’s biggest hotel sales plunge in 2020
An inhospitable market? LA’s biggest hotel sales plunge in 2020
Slate Property Group co-founder Martin Nussbaum and the Hotel Cecil (Slate, Google Maps)
Developer snags $30M loan for Hotel Cecil conversion
Developer snags $30M loan for Hotel Cecil conversion
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Justin Myers, Vice President of Atlas Hospitality
Study: California hotel construction outlook is bleak
Study: California hotel construction outlook is bleak
AEG CEO Dan Beckerman (Credit: Shaun Clark/Getty Images)
AEG plans 160-key hotel next to its DTLA headquarters
AEG plans 160-key hotel next to its DTLA headquarters
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...