San Francisco, Calif. – October 18, 2019 – CBRE has arranged $43 million in non-recourse construction financing for the development of an AC Marriott hotel, Marin County’s first major hotel to be built in over two decades. The 140-room hotel will be located in downtown San Rafael, on the corner of Fifth Ave. and B St. Construction of the hotel will begin immediately, and it is anticipated to open the third quarter of 2021.
John Nelson and David Kaim of CBRE’s San Francisco office arranged the financing on behalf of the sponsorship, Monahan Parker, Inc. CSI Construction will serve as the general contractor for the project. The floating-rate financing was provided by ACORE Capital, a leading commercial real estate finance company.
“This asset is in one of the premier locations in Marin County, and as a result, garnered interest from numerous capital sources,” said Nelson, executive vice president at CBRE’s San Francisco office. “All potential capital sources were attracted to the high average hotel occupancy market and experienced sponsors/developers. The winning lender tailored their loan to fit the sponsor’s needs, at a very compelling cost of capital. The financing was a perfect fit for both the sponsor and the capital provider.”
Monahan Parker, Inc. is a Marin County based multi-disciplined commercial real estate investment and development Company, specializing in property and land acquisition, planning/entitlements, construction, management and marketing. Thomas Monahan and Jonathan Parker, founders and principals of the Company each have over 30 years’ experience owning and operating commercial real estate in the San Francisco Bay Area.
The project’s excellent location in the heart of downtown San Rafael, the nexus of Marin County, continues to flourish due to BioMarin’s expansion and new Sonoma Marin Area Rail Transit Center (SMART Train), which provides easy access to San Francisco. In addition to strong corporate demand, Marin County has high leisure demand, being a destination for outdoor recreation with weather that allows visitors and residents to enjoy biking, hiking, sailing, kayaking, agritourism and many other activities all year round, as well as being centrally located between San Francisco and wine country to the north.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
About ACORE Capital
ACORE Capital, LP is a commercial real estate finance company focused on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity throughout the United States. ACORE, which is an acronym for Alpha Commercial Real Estate, specializes in providing borrowers with customized financing solutions at competitive rates and flexible terms. For investors, ACORE is focused on generating alpha through attractive commercial real estate debt investments coupled with superior risk management. ACORE is led by commercial real estate finance veterans Boyd Fellows, Stew Ward, Chris Tokarski and Warren de Haan. For more information, please visit www.acorecapital.com.