Located in the heart of the “Silicon Forest,” the asset will be supported by multiple demand generators
Palladius Capital Management (“Palladius”), a vertically-integrated real estate investment manager focused on pursuing multifamily, student housing, hospitality and select thematic investment strategies, today announced that, in joint-venture partnership with Marquee Funding Group, it has originated a $11.5 million loan to finance the construction of Cambria Hotel Hillsboro, a four story, 115-key asset located at 5523 NE Huffman St. in Hillsboro, Oregon. The fixed-rate loan carries a term of 24 months and is provided to sponsors Evergreen Hospitality Development, a Washington-based hotel developer and manager, and Fine Hotel Group, an Orange County, California-based hotel management company.
“We are excited to provide this financing to two high quality sponsors who understand the local market exceptionally well and have a sound business plan to own and operate a high performing hotel supported by multiple demand generators,” said Afshin Kateb, CFO and Head of Hospitality Investments. “This transaction illustrates that during these volatile capital markets times, while most regional banks have materially reduced their lending capacity, we remain present and ready to lend to qualified projects. Our decades of experience owning, operating and financing hotels gave us great confidence in making this loan, and we look forward to contributing our knowledge to support the project’s success. This origination demonstrates our unique ability to structure bespoke financing solutions that are beyond the capabilities of other lenders.”
The 22,000 square-foot upscale hotel will be constructed on land that is owned by Majestic Realty Co., which is adjacent to Majestic Brookwood Business Park, a master-planned 118-acre commercial development in the heart of Hillsboro’s business sector. Hillsboro, the fifth largest city in Oregon, has been dubbed “Silicon Forest” given the area’s heavy tech presence. Companies like Intel, Adobe, McAfee, Salesforce, and Nvidia call Hillsboro home. The market also houses other major employers, including Nike’s global headquarters, Applied Materials, and Thermo Fisher Scientific, among others. The hotel will also benefit from its proximity to the popular Orenco Station neighborhood, an award-winning transit-oriented community that features a diverse collection of retail shopping and popular restaurants.
Commenting on Palladius’s views on the hotel market, CEO Nitin Chexal stated, “We are firm believers in the long-term fundamentals supporting well-located hotels. We pay close attention to hospitality real estate and have been investing in it for years; we plan to be an active lender on a national scale on projects that meet our investment criteria. Recovery within the hospitality sector has been extremely market – and in some cases submarket – specific, as widely varying demand drivers create disparate impacts on regional and local hospitality ecosystems. In this case, the Hillsboro market demonstrates robust leisure demand and is beginning to show signs of recovery in business travel.”
Palladius’s debt platform targets construction and transitional commercial real estate lending, which it holds on its balance sheet. It originates, acquires and manages first mortgages, B-notes, mezzanine debt and preferred equity across most commercial real estate assets, including hospitality, multifamily, student housing, and single-family housing.
About Palladius Capital Management
Palladius is a diversified real estate investment manager that leverages institutional best practices, technology and operational expertise to drive value creation for institutional and individual investors. Led by a team of commercial real estate, finance and technology veterans, Palladius pursues value-add and core-plus strategies targeting multifamily, student housing, hospitality and other thematic investment strategies through its affiliates. Based in Austin, TX, Palladius manages and operates approximately $600 million of real estate across the U.S. and is focused on building a highly progressive platform that promotes diversity and inclusion. To learn more, visit www.palladius.com.
About Marquee Funding Group
Marquee Funding Group, Inc. is a full-service mortgage banking firm specializing in the origination, investment sale, and servicing of privately placed real estate loans more commonly known as hard money / private equity loans. Marquee funds all types of loans in both the consumer and commercial marketplace by offering access to borrowers that cannot find a source of institutional financing. Marquee has the ability to arrange debt on all types of real property. Marquee’s founders have been working together since 1994 and the dream of Marquee Funding Group came to fruition in 2009. The firm is managed by experienced mortgage professionals dedicated to offering the highest quality products and services in the industry.
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