El Segundo, California is on its way to having a beautiful new AC Marriott, and we’re very excited to be a part of it. Grandpoint Bank funded the construction loan for this beautiful, $33 million, 180-room project, which will have added bragging rights of providing El Segundo with its first rooftop entertainment space.
Earlier this month, we participated in the groundbreaking of the new hotel, now under construction at 2130 East Maple Avenue on a site adjacent to the L.A. Lakers’ training facility.
Welcome El Segundo, the force behind creating this AC Marriott hotel, is owned by Amar and Rita Shokeen. Their son, Arjun, serves as Operations Manager for their hospitality business. This dynamic family owns seven other hotel properties across the country and has the hospitality know-how to make this complex project happen.
One of the first hurdles the Shokeens faced with their development was the scarcity of parking in the area surrounding the hotel. To address the parking challenge, the City of El Segundo required that Welcome El Segundo first build a parking garage for the hotel that would also be available to the occupants of two nearby office buildings, a toy company and a business park.
Since Welcome El Segundo used cash for the parking structure development, we were able to obtain assignment rights and collateralize the parking lot for the hotel construction loan, and in doing so, helping Welcome El Segundo’s equity position and securing the loan.
Ahmad Shafique from Advantage CDC in Long Beach first connected us with the Shokeens. Through our outreach to many different economic development agencies, Ahmad knew about our lending capacity and community focus and hoped we could help. We hadn’t worked with the Shokeens before, but we were impressed by their financial and operational strength, so we moved forward with the construction loan process.
With help from our Senior Vice President Mo Helmy, Executive Vice President and Manager of our construction lending department Karen McGuire, Regional President John Nixon and President Rocky Laverty, we got the construction loan funded. The Shokeens quickly put R. D. Olson Construction to work building the hotel. Completion is expected for early summer of 2019.
Our sign posted at the construction site is generating a lot of interest from other business people who are building the places where we work, live, vacation and play. We are proud to provide services to entrepreneurs like the Shokeens and many more.
Please contact us if you have a business or project that needs a bank with a can-do attitude.
Simi Valley is on track to get 65 much-needed, new rental units, and we’re part of the team making it happen.
Chris Itule, principal of Itule Real Estate Group partnered with Norman Doerges and Randall Gustafson of Aurora Development Company and long-time Grandpoint Bank clients Adrian Stern and Larry Clumeck of Clumeck Stern Schenkelberg & Getzoff, to form 1196 Patricia Avenue Association.
Having earned approval to develop the property, the development team held a groundbreaking ceremony on November 1, where representatives from our bank were on hand to lend support and help celebrate this exciting milestone.
With help from our Construction Lending division, bankers in our Encino office were able to provide the construction loan for the project, known as Patricia Parc. The 24-month, interest only loan with a six-month extension option gives the developers time to complete the project before converting to a permanent phase at completion.
“It’s really exciting to work with developers from vision to finished product, literally seeing your work take form,” said Arlet Hur, Senior Vice President at Grandpoint Bank. “This development team really seems to know its target customer and understand the critical need for rental housing in Simi Valley.”
With Simi Valley’s median home prices ranging upwards of $600,000, many people, especially Millennials, face significant financial hurdles to home ownership. High quality rental properties are in great demand.
The three-story Patricia Parc community will offer one- and two-bedroom units and many amenities popular with Millennials. Those include electric vehicle charging stations, free Wi-Fi, bike lockers, a pool and gym, an outdoor kitchen, access to the Arroyo Simi Greenway and a dedicated rideshare drop-off and pickup area, among others. Patricia Parc is located less than one mile from Simi Valley Town Center and less than five miles from the Simi Valley Metrolink Center.
Five of the units will be designated as affordable for very-low-income tenants, and at least seven units will be handicapped accessible. Project completion is estimated for late fall or winter of 2018. 1196 Patricia Avenue Association has selected McCarthy Companies to construct Patricia Parc.
We’re eager to watch this exciting project take form and to help facilitate new housing options for members of our community.
For more information about construction lending through Grandpoint Bank, please visit the products and services page of our website at grandpointbank.com/product-and-services-commercial-banking-credit-and-financing.