Los Angeles (July 26, 2017) – Canyon Partners Real Estate LLC® (“Canyon”) provided $19 million of preferred equity to InfiniPower Hospitality Group for the construction of a co-branded, 261 room hotel development in San Jose, California. The project is comprised of a 147-room Residence Inn and a 114-room Fairfield Inn & Suites by Marriott, the world’s leading hospitality brand. The project’s franchise agreements with Marriott provide for best-in-class branding alongside access to Marriott’s extensive reservation system and established guest loyalty program. Johnson Hospitality Group will manage the property and is an investor in the project via an affiliate. Huff Construction will serve as the general contractor.
Canyon’s experience in hospitality investing includes a diverse nationwide portfolio, with $1.2 billion of capital deployed in over 30 projects, including $380 million in the past five years. Canyon’s track record in California includes $1.7 billion of investments across all major property types.
“With an outstanding team and solid track record in hospitality investing, Canyon’s investment in this project demonstrates their confidence in our ability to deliver a Class-A hotel development,” said Devang Shah, Founder of InfiniPower Hospitality Group. “The continued expansion of the technology center is driving not only office growth in San Jose but also hotel demand. This project will meet this demand and will become a key component to the America Center.”
The 166,340-square-foot, four-story building will include an outdoor pool and patio area with a fire pit, enhanced fitness center, bar, complimentary breakfast area, guest laundry facilities and a 24/7 sundry shop, as well as 1,200 square feet of meeting space and a business center.
The Residence Inn will feature 124 king studios, 19 one-bedroom suites and four two-bedroom suites, each offering spacious areas for working, relaxing, eating and sleeping, with fully-equipped kitchens, separate dressing areas and six-foot walk in showers. The Fairfield Inn & Suites will feature 30 king rooms, 34 king suites and 50 double queen rooms with separate areas for working and sleeping, with mobile desks and ergonomic chairs, refrigerators, microwaves and coffee makers.
The project is located in America Center, a 30-acre mixed use development located along the South Bay Freeway (Highway 237) in northern San Jose. A number of prominent companies, including Cisco, Adobe, Hitachi, Intel, Google, Oracle, Dell and Broadcom, are located less than one mile from the site. Local points of interest located less than two miles away include Levi’s Stadium, home of the NFL’s San Francisco 49ers, California’s Great America theme park, and the Santa Clara Convention Center. The Mineta San Jose International Airport is seven miles south of the project.
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 $6.5 billion of capital in over 255 commercial real estate and mortgage transactions with a total capitalization of $17.1 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 approximately $22 billion of assets. For more information visit: www.canyonpartners.com.
About InfiniPower Hospitality Group
Founded in 2002 by Devang Shah, InfiniPower invests, develops and manages hospitality real estate properties. As an approved Marriott franchisee, InfiniPower developed and owns the 95-room SpringHill Suites by Marriott in Sacramento, as well as the 104-room Fairfield Inn & Suites in Rancho Cordova.
About Johnson Hospitality
Johnson Hospitality was founded in 1999 by Ron and Randy Johnson. They opened their first hotel in 2002 and currently hold equity or management interests in seven Marriott properties. Johnson Hospitality specializes in hotel management, development and equity investments with a focus on select service, branded hotels. They are actively seeking to expand their portfolio from the Western to Midwest regions of the United States. For more information visit: www.johnsonhospitality.com.
Huff Construction Company
Huff Construction has been providing quality general contracting services to the hospitality industry since 1971. For more information visit www.huffcon.com.
(914) 686 5599