Terra Capital Closes on $22M for Marriott Warner Center
Wednesday August 27th, 2014 - 10:07AM ZS
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WOODLAND HILLS, CA—Terra Capital Partners, LLC, provided $22 million of preferred equity to Laurus Corp. of Los Angeles to help fund the $110 million acquisition and renovation of the 474-room Marriott Warner Center hotel.
Terra Capital completed its underwriting and due diligence in 20 days, working cooperatively with Bank of America, which provided $74.5 million in first mortgage financing.
Doug Vikser, director of Terra’s Los Angeles office, stated, “The Marriott is a dominant hotel in the San Fernando Valley and the renovation plan along with Laurus’ extensive management expertise, will increase the competitiveness of the property and ensure that it retains a dominant position.” Austin Kahn, chief investment officer of Laurus Corp., noted, “This was our second transaction with Terra and, based on our previous experience, we were confident they could move quickly and put together a creative structure to facilitate our business plan.”
According to Bruce Batkin, Terra’s co-founder/CEO, the company is increasingly focused on “transitional” properties—those requiring renovation, re-leasing and repositioning—as well as pre-development financing to enable developers to acquire parcels, prepare plans and obtain approvals prior to securing construction financing.
Tags: Terra Capital • Bruce Batkin • Doug Vikser • Marriott Warner Center • Hospitality • Sources of Funding • Investment Funds •
The theme of this year’s ALIS conference was “Don’t Worry, Be Happy.” But, lets face it, there are always going to be some people who aren’t happy unless they are worried about something—whether it’s the Fed potentially raising interest rates or that the price of oil is now too low, threatening to cripple the economies of some foreign nations.