Los Angeles (May 1, 2017) – Canyon Partners Real Estate LLC® (“Canyon”) has provided $15.75 million of preferred equity to a joint venture between Simone Ventures and San Diego Carté Hotel, LP for the construction of Carté Hotel, a 240-room Curio Collection by Hilton boutique hotel in San Diego. Carté Hotel will be operated by Interstate Hotels and Resorts, the largest third-party hotel management company in the U.S.
Canyon’s experience in hospitality investing includes a diverse nationwide portfolio, having deployed $1.2 billion of capital in over 30 projects, including $380 million invested in the past five years. Canyon’s experienced track record in California includes $1.7 billion of investments across all major property types.
The 14-story, upper upscale hotel will include 1,662 square feet of ground floor retail space featuring a wine shop and a 26,000 square foot fitness center operated by FIT Athletic Club, the premier athletic company in the San Diego area. The LEED® Silver certified property will also feature an outdoor pool with food and beverage service, a roof top bar and lounge and a full-service restaurant. A two-level below- grade parking structure will have 118 spaces.
The project is located in downtown San Diego adjacent to the city’s Little Italy neighborhood, which is home to some of the most visited restaurants and shops in the metro, and proximate to the famed Gaslamp Quarter, an entertainment and retail destination that draws visitors from around the country. The project is also proximate to the San Diego Convention Center, which hosts over 800,000 visitors annually, as well as numerous other tourist attractions. Additionally, the new $555 million, 22-story, State Superior Court building opening in May 2017, is located one block from the project’s site and there is approximately 4.3 million square feet of office space within a four-block radius. San Diego International airport is located two miles from the property.
“As the San Diego market demand for hotel space continues to grow for both tourist and business travelers, Carté Hotel will meet this demand as the only full-service hotel classified as upper upscale in this vibrant neighborhood, and we are pleased to partner with Canyon to deliver this project,” said Ried Floco, representing San Diego Carté Hotel.
Giuseppe Simone, General Partner, Simone Ventures and President, Del Mar Investments Inc. added, “The depth and experience of the Canyon team and their outstanding track record in financing hotel development resulted in flawless execution of the transaction, with construction scheduled to begin immediately to complete the project in Q3 2018.”
About Canyon Partners Real Estate LLC
Canyon Partners Real Estate LLC (Canyon) is the real estate direct investing arm of Canyon Partners, LLC. Canyon focuses on providing debt and equity capital for commercial real estate in primary and secondary markets across the U.S., primarily to facilitate asset acquisition, value-add repositioning, development or recapitalization. Since inception, Canyon has invested over $6.0 billion of capital in over 230 commercial real estate and mortgage transactions with a total capitalization of $15.8 billion through its distinct real estate investment platforms.
Founded in 1990, Canyon Partners, LLC is an investment management firm headquartered in Los Angeles which, together with its affiliates, manages over $23 billion of assets. For more information visit: www.canyonpartners.com.
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