Mosaic Real Estate Investors has provided a $212.3m (€186.2m) loan to The Robert Green Company to help develop a resort in California.
The financing, which was arranged by George Smith Partners, will be used to fund the 145-acre first phase of the master-planned SilverRock Resort and Residences mixed-use development in La Quinta.
The three-year senior construction loan will be used to fund the pre-development and construction costs of a 140-key Montage Resort, a 200-key Pendry Resort, 10 luxury golf villas, a shared service and conference facility, and a golf clubhouse.
Development of horizontal infrastructure is now underway, and the Montage and Pendry resorts are expected to open in 2020.
Malcom Davies a principal and managing director at George Smith Partners, said the financing process required collaboration of multiple entities and extensive understanding of the market.
“This project encompasses a tremendous amount of complexity and required a financing strategy with exceptional fortitude and flexibility.”
Robert Green, founder of The Robert Green Company, said: “We immediately recognised the substantial value this development will bring to the Coachella Valley.”
The region attracted 12.9m visitors this year, with a projected 30% increase in visitors over the next eight years, Green said.
“This is simply the perfect time to bring a project of this magnitude to the region.”
Ethan Penner, a managing partner and CIO of Mosaic Real Estate Investors, said: “The strength of sponsorship, combined with the superior hotel flags and the demand drivers for this type of luxury development in the Coachella Valley makes this loan a strong strategic fit for the firm’s investment thesis.
“This investment is well-aligned with our dedication to identify and invest in properties that fill unmet needs in the capital markets.”