$67.1M in financing secured for the development of the Marriott Courtyard Residence Inn in Sand City, California
JLL Capital Markets worked on behalf of EKN Development Group to secure financing for the 215-key hotel
NEW YORK, Feb. 1, 2024 – JLL Capital Markets announced today that it arranged a total of $67.1 million in construction financing for the development of the 215-key, duel-branded hotel, Marriott Courtyard Residence Inn in Sand City, California.
JLL represented the borrower, EKN Development Group and Garn Development, and secured the first mortgage loan of $39 million from HALL Structured Finance, and Nuveen Green Capital provided a CPACE loan of $28.1 million.
The 139,660-square-foot building will include 215 guest rooms. The Courtyard by Marriott includes 127 guestrooms and features the brand’s clean lines, combining beach style with a modern feel. The Residence Inn by Marriott includes 88 rooms designed for the longer-stay guest. The development will feature 3,133 square feet of flexible meeting space, a spacious courtyard with a resort style pool, luxurious cabanas and a fully equipped stage to accommodate live performances and events. The hotel will also include an epicurean experience with an independently branded restaurant and bar.
The property is located along the scenic coast of Sand City, California. With its prime location, the property benefits from its proximity to Monterey State Beach and Cannery Row. As the only new select-service/extended-stay hotel in the area, it takes advantage of the steady demand generated by attractions such as the Monterey Bay Aquarium, Laguna Seca Raceway, world-class golf courses and stunning landscapes that attract visitors from all over the world.
“In this economic climate and inherent stricter loan requirements, the demand for innovative financing methods and sources are crucial to the success of all projects. Working with the JLL team has always presented viable alternatives and we just closed our second deal with them in Sand City,” said Ebbie Khan Nakhjavani of EKN Development. “JLL’s approach to creative financing was a game-changer for our project in Sand City, particularly in these difficult economic conditions.”
“We at Nuveen Green Capital are very much excited about the proposed project and have great confidence in its success. This transaction is another example of a growing list showing how C-PACE can be used to offer an accretive financing solution for owners and developers,” added Cory Jubran of Nuveen Green Capital.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About EKN Development
EKN Development specializes in developing timeless projects that capture the essence of the local community and personifies the spirit of each location. EKN believes in creating transformative places that provide a location for human connection and enrichment. Guided by our creative vision and decades of experience, we deliver human-centric, state-of-the-art resorts and projects that transcend materiality.
To deliver on our vision, we capitalize on our distinct expertise to pursue unique locations with diverse demand drivers and high barriers-to-entry. EKN is dedicated to creating the outstanding spaces of tomorrow that draw visitors and locals together, encourage economic growth, and stand the test of time. For more information, visit and follow us at EKNDevelopment.com.
About Garn Development
Garn Development is a diversified real estate development company specializing in land acquisition, planning, entitlement, design, construction and asset management of hospitality, multi-family, retail, industrial, and assisted-living properties. We create value for partners and have a diverse income stream that is resilient to market cycles. Our ample access to capital, investment discipline, and sound financial footing allow us to capitalize on long-term industry trends and short-term opportunities alike.
About HALL Structured Finance
HALL Structured Finance is an entrepreneurial, value-add, direct private lender that provides first mortgage debt capital for new construction, adaptive reuse and major asset repositioning for commercial real estate projects located throughout the United States. HALL Structured Finance has historically focused on providing multifamily and hotel construction loans and hotel bridge loans, but also provides financing in connection with industrial, office and retail. For more information, visit hallstructuredfinance.com.
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions. The company, which was established by the C-PACE industry’s founders and standard-setters, has grown to offer a market-leading suite of accretive financing products for commercial real estate owners who seek to improve the energy, water and resiliency performance of their property. Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for the commercial real estate market and community.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.