JLL’s Capital Markets Group has arranged a $265 million refinancing for a 387-key, master-planned beach resort in Oceanside in North County San Diego, California. The resort includes the 161-key Mission Pacific boutique hotel and The Seabird Resort, a 226-key full-service resort.
JLL represented the borrower, S.D. Malkin Properties, to secure the floating-rate, interest-only loan through Acore Capital. The JLL team has been involved with the project since inception and arranged construction financing for the resort in 2018. Proceeds from this refinance were used to retire that construction facility, including a significant mezzanine loan. The new loan will provide cost savings, term and flexibility for the sponsor.
“The financing is a great validation of the bespoke hotels that have been created and Oceanside’s rising ‘cool factor’,” said Jeremy Cohen, senior vice president of S.D. Malkin Properties.
Completed in May 2021, the adjacent hotels are located on a 2.75-acre, two-block site spanning 700 feet of beachfront real estate. Operated by Hyatt, both hotels offer ocean views, direct beach access, an entire ecosystem of food and beverage experiences, interior meeting and function space, two pools with views of the Pacific and access to some of the best surfing on the California coast. The site also features the historic 1887 beach cottage featured in the Top Gun movie, which will open soon as a nostalgic dessert bar.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Timothy Wright and Director Olga Walsh in coordination with the JLL Hotels & Hospitality team.
