JC Resorts, a San Diego hospitality firm that owns the Rancho Bernardo Inn, has invested millions to become an equity partner in a financially troubled, prime oceanfront $480 million resort that opened a little more than a year ago in the Los Angeles area, reports the San Diego Union-Tribune.
While the terms of the deal to rescue the 102-acre luxury property from foreclosure cannot be disclosed, JC Resorts said its investment in Terranea Resort in Rancho Palos Verdes, Calif., exceeded $20 million, the most it has spent on any one hotel property.
JC Resorts recently came to the rescue after Terranea’s owner, Lowe Enterprises, had defaulted on both its construction loan and secondary loan. JC’s investment, which positions the company as a joint venture partner with Lowe, is part of a deal that included an extension of the loans on the property and new capital commitments of more than $100 million by new and existing investors. Affiliates of ST Residential, LLC hold the loans on the property and are participating in the new capital commitment.
The 580-room resort, which includes 82 for-sale villas and casitas that start at $1.3 million, opened last year amid a deep economic downturn that has hit the tourism industry very hard.
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