The Los Angeles Marriott hotel EB-5 project
A dual-brand hotel under Marriott's Courtyard and Residence Inn flags is to be developed at Marina del Rey in Los Angeles by the Invest LA Regional Center with the Chinese-American developer Singpoli Group, the franchise rights and deposit for both brands having recently been secured. The site faces the sea with a marina behind it, and the building will replace the existing Courtyard on Maxella Avenue, becoming the third largest hotel in Marina del Rey. The article describes the location, a construction budget of about US$70 million, and an EB-5 raise of up to 72 investors at US$500,000 each, on five-year mortgage terms at 1 per cent a year, expected to create 782 jobs.
The project
The project is to be developed by the Invest LA Regional Center together with Singpoli Group, a well-known American real estate development group. It comprises a dual-brand hotel under Marriott's Courtyard and Residence Inn flags. The franchise rights for both Courtyard and Residence Inn have recently been obtained and the franchise deposits paid.
The hotel's chief distinction is that it faces the ocean with a yacht marina behind it, and every guest room will take in the whole of the view over Marina del Rey. The site is 30 minutes from downtown Los Angeles, 15 minutes from Beverly Hills, 20 minutes from Hollywood and 40 minutes from Disneyland.
The total construction cost is about US$70,000,000, roughly US$243,000 a room. Building and operating the hotel will bring the Marina del Rey area about US$40,000,000 in additional public revenue over ten years and create a large number of jobs.
Distinctive advantages
The hotel will replace the existing Marina Del Rey Courtyard at 13480 Maxella Avenue, on the east side of Lincoln Boulevard in Los Angeles, and will become the third largest hotel in Marina Del Rey after the Marriott at Via Marina and Admiralty Way and the Ritz Carlton on Admiralty Way.
The site stands at the northern edge of Marina Del Rey close to the beach and commands the waterfront leisure market. Because of its superior position, the view from beside the hotel pool is one that no other Courtyard or Residence Inn can match. Every room looks out on sea, pool and wetland park.
Summary for EB-5 investors
No more than 72 EB-5 investors will be raised, each investing US$500,000, for a total of no more than US$36,000,000. Investors invest by way of a mortgage loan for a term of five years, with interest of 1 per cent a year returned to them; 782 jobs will be created in the first two years, securing permanent green cards for the investors.
The co-developers
Singpoli Group was founded in Southern California in the early 1990s and has more than 21 years' experience in commercial real estate development. Its business covers interior design, architectural design, real estate development, construction works, real estate investment, real estate agency services, asset management and financial planning.
Chadam Del Rey Investors LLC is affiliated to the Hardage group, a hotel and real estate developer headquartered in San Diego, California. It is a separate entity with its own assets, formed specifically to develop, build and operate this hotel. The Hardage group has developed, owned and operated many branded hotels in the United States, including Woodfin Suite hotels and Chase Suite hotels.