—Lowe Enterprises and JC Resorts have secured a $220 million first mortgage loan for Terranea Resort. The capital was provided by a client of Cornerstone Real Estate Advisers and will be used to refinance the 582-key oceanfront resort.
"Terranea brought Cornerstone an opportunity to provide our client with a significantopportunity collateralized by a resort that demonstrates ramping performance, robust group bookings and high-quality facilities and amenities,” said Jamie Henderson, managing director of Cornerstone’s Alternative Investments Group.
Terranea Resort’s performance and growth allowed Lowe to secure new financing before the previous loans matured. Opened in May 2009, the resort has seen an increase in both leisure and business travel guests, with gross revenue up 58 percent since 2010. In 2012 REVPar increased 16 percent over the previous year.
“Terranea is truly a one-of-a-kindthat has become a favored destination for leisure and business travelers, groups and the local community,” said Robert J. Lowe, Jr. co-president of Lowe Enterprises, in a statement. “Cornerstone understands Terranea’s operating model and was able to be flexible in loan terms to allow us to optimize the Resort’s performance.”
Terranear Resort sits on 102 acres ofcoastline. The property contains a 400-room hotel, oceanfront bungalows, 32 private Ocean Villas and 50 Ocean Casitas. The resort also has 145,000 sq. ft. of meeting space, a 50,000-sq.-ft. spa, and nine-hole golf course.