Ohana, DivcoWest Score $240M Refi on La Cantera Resort

A sprawling San Antonio resort near the Spurs massive new practice facility is set to score a major refi.

A joint venture of Ohana Real Estate Investors and DivcoWest will receive a $240 million loan backed by La Cantera Resort & Spa, according to Fitch. The 496-key resort at 16641 La Cantera Parkway, is northwest of the city’s downtown, just outside Loop 1604.

The deal is set to close on April 24. The new, floating-rate loan will refinance $235.5 million in existing debt and pay estimated closing costs of around $4.8 million. It is co-originated by German American Capital Corp and Wells Fargo. The loan is set to expire in two years, and comes with three one-year extension options.

In 2021, the Ohana-Divco joint venture purchased the resort for $327.5 million, or $660,282 a key. Since then, it has invested about $9 million into the property. Prior to the acquisition, the resort was converted from a Westin to its current branding, a move which came with a $166.7 million investment, according to Fitch.

The property’s revenue per available room has increased 20 percent compared with pre-pandemic performance. Golf revenue at the resort is up 112 percent and spa, fitness and recreation revenue jumped 45 percent in that time.

La Cantera is one of the city’s hottest regions for growth. The Spurs new practice facility, called The Rock at La Cantera, will include $500 million of developments including workplaces for the franchise’s business operations, restaurants and medical offices. Nearby, Affinius Capital will build 350 apartments and 10,000 square feet of retail space.

For the first time since 2005, San Antonio leads Texas cities in hotel occupancy rate, according to a report from Marcus & Millichap. The brokerage expects San Antonio’s RevPAR to increase 18.6 percent this year to $93.96, which would push it past Dallas-Fort Worth for second in the state. Its average daily rate is $40 less than that of Austin, just about an hour north of the Alamo City.