WHY OUR INVESTORS ARE OUR PARTNERS
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HEADING
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Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |
Real Estate & Borrower Business Plan
- Total collateral consists of a 301.71-acre site located in Coachella Valley’s town of La Quinta, CA
- Project plans include a 140-room Montage luxury full-service hotel, a 260-room Pendry full-service lifestyle hotel (initially 200 until completion of the Pendry residential units), an 18-hole Arnold Palmer golf course, and conference center
- Each hotel will offer branded residences; 29 units with Montage brand, and 66 with Pendry brand
- Three development parcels (planning areas 6, 7, and 8) totaling approximately 51.0 acres are entitled for 390 single family residences; these areas are expected to be sold within twelve months from closing
MREC Investment Attributes
- Site is within the highest net worth area in Coachella Valley, and a leading golf destination in the United States
- Upon completion (projected January 2021), hotels and residences will be newest product in the market
- MREC will require the project to be constructed under a bonded guaranteed maximum price (GMP) contract
- Developer to contribute substantial equity, totaling $88.22M
- Numerous demand generators in the proximate area include the Coachella Valley Music and Arts Festival, the Palm Springs Convention Center, PGA Tour events, and various sports tournaments
Borrower & Development Team
- The Robert Green Company boasts a strong development track record of success within the luxury hospitality industry; prior completed projects include Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Pendry San Diego
- Subject site benefits from an experienced management team and the well-known Montage and Pendry hotel brands
DEAL TERMS
Priority – 1st Trust Deed
Use of Proceeds – To finance the construction of the SilverRock Resort & Residences
MREC Investment – $212,500,000 ($531,250 / Key)
Total Investment Amount – $300,720,000 ($751,800 / Key)
Projected Value* – $409,500,000 ($1,023,750 / Key)
Loan to Value – *51.89%
Investment Period – 3 years (two 1-year extensions)
Interest rate – 30-Day LIBOR + 1100 bps
Unused Fee – 0.50% on Initial $36M; 0.50% on the $176.5M upon commencement of Vertical Construction
Commitment Fee – 2.00% of Loan Amount
Exit Fee – 1.00% of Repaid Amount
Extension Fee – 1.00% of Loan Amount Extended
SOURCES & USES
USES
| Construction | $155,478,321 |
| FF&E and OS&E | $32,696,891 |
| Design Fees | $19,172,049 |
| Professional & Technical | $4,355,722 |
| R.E. Taxes & Insurance | $4,335,882 |
| Supervision (G&A) | $7,378,288 |
| Permits & Fees | $7,798,729 |
| Pre-Opening Expenses | $4,300,000 |
| Working Capital | $900,000 |
| Development Fee | $7,694,107 |
| Financing Costs | $7,207,315 |
| Residential Sales & Marketing | $1,240,826 |
| Residential HOA | $700,000 |
| Construction Period Interest | $16,753,030 |
| Contingency | $13,322,174 |
| Estimated Reserve for Vertical Construction | $17,386,667 |
| TOTAL USES | $300,720,000 |
SOURCES
| Equity | |
| Initial Borrower Equity | $12,000,000 |
| Additional Borrower Equity | 76,220,000 |
| Debt | |
| Pre-Development (Initial Funding) | $14,306,883 |
| Pre-Development (Future Funding) | $21,693,117 |
| Vertical Construction | $176,500,000 |
| TOTAL SOURCES | $300,720,000 |