A bankruptcy court has approved affordable housing developer National Community Renaissance’s acquisition of a bankrupt 309-key hotel near Ontario Airport, The Real Deal has learned.
The non-profit, known as National CORE, bought the Ontario Airport Hotel and Conference Center, a 10-story property at 700 North Haven Avenue, for $20.7 million, court records show. The 200,000-square-foot hotel houses a Chinese restaurant called Mr. J and has rooms with advertised nightly rates starting at $90, according to Expedia.
The purchase price covers the $18.2 million of debt on the property and includes an additional $2.5 million in cash. However, the Rancho Cucamonga-based firm may end up paying more than the $20.7 million total, since it is also on the hook for an unspecified amount in “cure costs” relating to the hotel’s leases and contracts.
The transaction comes six months after the previous owner of the property, Morgan Holding Group, filed for bankruptcy. The firm, managed by Jianhua Jin, was seeking to block lender Cathay Bank, which was trying to push the property into receivership. Cathay provided a $15 million construction loan on the hotel in 2019.
National CORE entered into contract on the property on Aug. 2, according to a declaration from Robert Diaz, the firm’s general counsel. In a court order dated Aug. 13, Judge Magdalena Reyes Bordeaux approved the transaction, saying that a quick sale was necessary to “maximize the value” of the asset.
National CORE’s California portfolio consists of 87 residential properties, according to its website. Its properties include newly built housing complexes such as Las Dahlias, a 78-unit housing complex in East Los Angeles, and Nestor Senior Village, a 73-unit property in San Diego.
In 2024, National CORE plans to complete construction of 544 apartments and start construction on another 295 units. The firm did not respond to a request for comment.