Refinancing secures Terranea future
The future of the Terranea resort in Rancho Palos Verdes, California, appears to have been secured, after developer Lowe Enterprises agreed a transaction including an extension of the loans on the property and new capital commitments of over US$100 million.
Terranea, which includes an acclaimed, walking-only nine hole oceanfront short course designed by California-based golf architect Todd Eckenrode, opened in 2009.
The additional funds were provided by a combination of new and existing investors in a new joint venture with JC Resorts, a San Diego hospitality company with 40 years of resort and golf experience in Southern California. Affiliates of ST Residential, LLC hold the loans on the property and are participating in the new capital commitment.
“We appreciate ST Residential’s confidence in Terranea and its diligence in working with us to reach this new agreement. In addition to being our primary lender, ST Residential has acquired the mezzanine loan on the property which demonstrates its commitment and belief in this rare property,” said Robert Lowe, chairman and CEO of Lowe Enterprises. “Equally important is the commitment of our existing investor group and JC Resorts. With this new partnership in place, Terranea is well-positioned to take advantage of the continuing improvement in the hotel and residential markets.”
The consummation of this transaction effectively eliminates any uncertainties about Terranea following the takeover of its original construction lender, Corus Bank, by the Federal Deposit Insurance Corporation, the subsequent acquisition of Terranea’s loan by ST Residential, and the challenges resulting from the recession.