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Irvine Developer Gets $23 Million for Anaheim Hotel

One of the developers planning a hotel for Anaheim’s resort area has gotten a construction loan to get the project under way.

SunCoast Properties Inc., an Irvine-based hotel developer, recently received nearly $23 million in construction financing from an unnamed commercial bank to build Country Inn & Suites at the Disney Resort, a 174-room hotel being built near the intersection of Disney Way and Clementine Street.

The 2.6-acre site is at 1640 S. Clementine St. and previously held industrial and office buildings.

The five-story hotel, which sits near the Anaheim GardenWalk shopping center, will run about 110,000 square feet and is scheduled to open late next year. It will be managed by Hospitality Management Corp.

The debt placement team of brokerage HFF LP represented the borrower in securing the loan.

JLL Buys MPA

Chicago-based JLL has acquired one of the Orange County’s better-connected development services firms in Martin Potts & Associates.

Newport Beach-based MPA, which offers third-party project and construction management services for office, hospitality, retail, and healthcare properties, reached a deal this month to be acquired by the brokerage giant, which is trying to grow its project management offerings in the region.

Terms of the deal, which is expected to close by the end of the month, were not disclosed.

Martin Potts, who founded the company in 1991, and partner Greg Holcomb are among the 11 MPA employees between OC and the company’s Northern California office who will move over to JLL.

The company provides project management, construction management, tenant coordination and entitlement services for new developments, renovations and value-add projects.

MPA does a lot of work for Newport Beach-based Irvine Company. Its website listed Irvine Co. projects at the Pelican Hill resort and the Island Hotel, which are both in Newport Beach, among its hospitality experience. Projects at the Fashion Island and Marketplace shopping centers are listed as part of its retail portfolio.

Its other recent work includes the San Juan Medical Center, a medical office project in San Juan Capistrano that was built this year by Irvine-based Accretive Realty Advisors Inc.

It is JLL’s third OC-based acquisition in the past four years. In 2012 it bought the operations of 360 Commercial Partners, a boutique brokerage in Irvine, and last year it bought Cleo Construction Management, a healthcare project management company based in San Clemente.

The Cleo Construction and MPA deals are part of an effort to grow its project management and design services group in the Southwestern U.S., the brokerage said.

JLL’s companywide project and development services group manages more than 24,000 projects annually in the U.S., according to the company. It says it has $12 billion worth of work currently under management.

New Steadfast REIT Sought

Irvine-based Steadfast Cos. has filed plans with the Securities and Exchange Commission to launch another nontraded real estate investment trust geared toward buying apartments.

The real estate investor filed plans this month to raise up to $1.3 billion from investors for its Steadfast Apartment REIT III Inc., which will seek to buy “established, stable apartment communities with operating histories that have demonstrated consistently high occupancy and income levels across market cycles, and are located in neighborhoods within close proximity to employment centers.”

At least half of the new offering’s portfolio will be properties where Steadfast can “execute a ‘value-enhancement’ strategy whereby we will acquire under-managed assets in high-demand neighborhoods, invest additional capital, and reposition the properties,” the company’s registration statement said.

Another of the company’s nontraded REITs for apartments, Steadfast Apartment REIT, holds a portfolio of 26 properties in 11 states. It raised about $325 million from investors, and properties purchased by that offering now top $1 billion in value, the company said last month.

Steadfast Cos. also runs Steadfast Income REIT, which raised $736 million from investors a few years ago and has focused largely on apartment purchases, buying more than 16,000 multifamily units.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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