AVANA Capital Closes $60M Construction Financing
- Jan 23, 2018
Mogul Capital has received a $60 million construction loan for the development of a dual-branded Marriott Courtyard and TownePlace Suites hotel in Hawthorne, Calif. AVANA Capital closed the financing transaction, which includes a $50 million conventional loan and a $10 million mezzanine loan with above market leverage.
Located in downtown Hawthorne, the 354-key hotel will feature a restaurant, swimming pool and a meeting room for business purposes. The property is situated near many aerospace-related businesses, such as SpaceX, Northrop Grumman, Tesla’s design headquarters, Boeing, Aerospace Corp., Raytheon, LA Airforce Base and Mattel. Additionally, Los Angeles International Airport is within five miles of the property.
The hotel will be developed with modular construction by Lusardi Construction Co. and the modular construction expert, Guerdon Modular Buildings; this type of building will bring benefits such as higher STC ratings and reduced noise transmission levels from room to room. The development is expected to create eight permanent jobs during and after the construction period.
“Mogul Capital has proven expertise in developing high quality assets, and we are excited to assist in their ongoing growth,” said Matt Hunt, chief credit officer at AVANA Capital, in prepared remarks. “Additionally, we had previously worked with Guerdon on modular construction projects and we had experienced firsthand the added value in terms of time, money and quality that they bring to the table.”
Another Mogul Capital development in the area, includes the 184-key Homewood Suites by Hilton in Redondo Beach, Calif.