Coachella Valley Resort Lands $212M Financing

Amy Horsfield Amy Horsfield Uploaded 18 January 2019

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US: The Robert Green Co. will use the loan to construct the first phase of SilverRock Resort and Residences.

The Robert Green Co. is moving forward with development of the master-planned SilverRock Resort and Residences mixed-use development in La Quinta, California thanks to $212.3 million in construction financing.

The three-year senior construction loan from an affiliate of Mosaic Real Estate Investors, arranged by George Smith Partners, will be used to fund the predevelopment and construction costs of a 140-key Montage Resort, a 200-key Pendry Resort, 10 luxury golf villas, a shared service and conference facility and a golf clubhouse. The Montage and Pendry resorts, two hotel and resort brands within Montage International, are expected to open in 2020.

Malcolm Davies, George Smith Partners principal & managing director, said: "As Coachella and other desert festivals increase in popularity, there is tremendous growing demand for high-level hospitality product, making this new resort and luxury living community the highest and best use for this initial 145-acre land parcel. This project encompasses a tremendous amount of complexity and required a financing strategy with exceptional fortitude and flexibility. Our team worked closely with the developer to identify the right financing partner, and to structure the financing in a way that was extremely accretive to the developer's underwriting."

Robert Green, founder of The Robert Green Co., an Encinitas, California-based company that specialises in luxury hospitality and mixed-used development throughout the Western U.S., noted the Coachella Valley region attracted 12.9 million visitors in the past year. 

Green said: "We immediately recognised the substantial value this development will bring to the Coachella Valley. This is simply the perfect time to bring a project of this magnitude to the region. The existing golf course, a PGA tour caliber facility, is a tremendous asset when looking at this development from a macro perspective."

Ethan Penner, managing partner & CIO of Mosaic Real Estate Investors, added: "This investment is well-aligned with our dedication to identify and invest in properties that fill unmet needs in the capital markets. Coachella Valley has quickly become a top tourist destination and we are confident in the long-term fundamentals of this project."

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