More details are emerging about one of the first big local hotel developments that will have ties to Huntington Beach-based apparel manufacturer and retailer Quiksilver Inc.
Newport Beach-based developer Matteson Capital is reportedly negotiating to buy nearly 80 acres near Palm Desert for a $350 million resort that will be branded under the Quiksilver Hotels & Resorts International name.
Tentative plans call for between 400 and 600 rooms, plus 150 or so residential villas at the site near the Desert Willow Golf Resort.
Groundbreaking for the project isn’t expected to take place anytime soon. Negotiations between Matteson Capital and city officials for Palm Desert, which owns the land, could take about a year to wrap up, according to local reports.
Details of the project were first reported in The Desert Sun newspaper.
Quiksilver announced in January that it signed an exclusive license agreement with Matteson Capital, which is trying to raise about $250 million in a private offering to kick-start development of several “active lifestyle hotels and resorts” under the Quiksilver name.
Matteson Capital is the successor company of Newport Beach-based Centurion Partners, a developer of high-end resorts, residential towers and mixed-use properties. The company’s headed by founder Scot Matteson.
Other potential hotel development sites mentioned when the license agreement was struck are in Anaheim, Orlando and Hawaii.
Quiksilver, which entered the hospitality business last year when it opened Quiksilver Holiday Rental Apartments in Byron Bay on Australia’s eastern coast, isn’t expected to invest in the Matteson Capital-led project but has licensing and approval rights for the hotels.
Loan for The Bays
The Irvine Company in Newport Beach has taken out a loan for an apartment complex it owns near its Fashion Island shopping center.
The real estate company—OC’s largest apartments owner—recently got a $126.5 million first mortgage for The Bays, a 556-unit, garden-style apartment complex near the intersection of MacArthur Boulevard and San Joaquin Hills Road.
Irvine Co. built the complex in phases starting in the 1970s. The two-story buildings sit on about 38 acres. A recent appraisal by CBRE Group Inc. put its value at about $211 million.
The loan is being used to fund reserves, pay closing costs, and return about $125.9 million in equity to Irvine Co., according to an analyst report by Kroll Bond Rating Agency.
The Bays and the landlord’s Woodbridge Pines apartment complex in Irvine, for which Irvine Co. recently secured a new $41 million loan, are two of the larger properties acting as collateral in a newly issued $1.3 billion CMBS transaction.
The loan for The Bays is the largest of 105 loans that are part of the transaction. The two apartment complexes are the only Irvine Co. properties involved in the deal.
Other previously debt-free Irvine Co. properties, including a 4.8-million-square-foot portfolio of office buildings, have ended up as collateral for CMBS transactions over the past two years, shedding a little more light on the financial operations of the privately held company, Orange County’s dominant real estate firm.
The 105 loans for the latest CMBS transaction were originated by 18 lenders between September 2013 and July of this year in conjunction with the Federal Home Loan Mortgage Corp.’s Capital Markets Execution program, according to Kroll.
Quail Street Sale
The Newport Beach office that holds the headquarters of homebuilder City Ventures Inc. has traded hands.
An Irvine-based entity listed in property records as Sunshine Ventures LLC paid about $3.7 million for the roughly 10,000-square-foot office at 1900 Quail St. The property is part of the Hangars office complex a few blocks from John Wayne Airport.
The buyer isn’t believed to have ties to City Ventures, which occupies the entire building.
Irvine-based KDG Investments was the seller.
