$115M Construction Loan for Anaheim Luxury Hotel
- Nov 30, 2018
BPM Real Estate Group has received a $115 million loan to build a 12-story, 326-key, four-star Radisson Blu hotel in Anaheim, Calif. When finished, the property will be the tallest in the Disneyland area.
George Smith Partners facilitated the construction loan through 3650 REIT, a national commercial real estate portfolio lender founded by Jonathan Roth, Toby Cobb and Justin Kennedy.
“This is one of the most well-located development sites in Orange County,” said Malcolm Davies, George Smith Partners’ principal and managing director, in a prepared statement. “We’re very excited about this property’s excellent prospects and were thrilled to work so diligently with BPM and 3650 to drive the value of this project and identify a solution that would work for all parties involved. We feel we assembled the right team with the right understanding of the property and we look forward to continuing our work together.”
Designed by GBD Architects, the luxury hotel will feature a modern design and contain numerous family-friendly amenities. About 50 percent of all guest rooms will offer bunk beds to appeal to families with children.
The hotel will also offer a ground-floor swimming pool and a rooftop pool deck, which will deliver unobstructed views of Disneyland’s famous nightly firework show. There’s also plans for a 353-stall garage offering guests plenty of onsite parking.
“The ambiance and visibility from this property will be like nothing else in the market,” saidWalter Bowen, BPM’s founder & CEO, said. “We recognized the opportunity to harness the power of Anaheim’s compelling fundamentals while also introducing a leading global brand to this sought-after tourism destination.”
Close to Mickey and Minnie
Located at 1601 S. Anaheim Boulevard, the property will be situated within the Disneyland/Anaheim Convention Center submarket, and the hotel will boast a rare four-star offering in that area.
The Radisson Blu Anaheim will be near the Anaheim Resort district on Interstate 5 and within walking distance to Disneyland’s main entrance and the soon to open Star Wars Theme Park,
According to recent reports, the Anaheim market has seen tourism on the rise in recent years and has benefitted from increasing hotel occupancy―78 percent in 2012 to 85 percent in 2017.
With more than 28 million annual visitors to Disneyland Park, generating more than $12 million of revenue in the submarket each year, the hotel is primed to be successful.
The loan was secured by George Smith Partners’ Principal & Managing Director Malcolm Davies and Vice President Zachary Streit, along with other members of the Davies Group in Los Angeles.
The property is expected to be ready to open in mid-to-late 2020.
In October, George Smith Partners completed $105.5 million in financing for the $150 million initial phase of The Watermark Tempe, a master-planned, mixed-use development on Tempe Town Lake in metro Phoenix.
Image courtesy of George Smith Partners