Rockbridge Capital Announces $23,750,000 Stretch-First Mortage to Develop Two HOtels in Thousand Oak
COLUMBUS, OH, July 6, 2005. Columbus, Ohio-based RockBridge Capital, LLC ("RockBridge") today announced the closing of a $23,750,000 stretch-first mortgage to finance the construction of a 213-room portfolio that includes a 120-room Courtyard by Marriott and a 93-unit TownePlace Suites in Thousand Oaks, California.
The sponsor is Ocean Park Hotels ("OPH"), a Valencia, California-based hotel owner / operator that currently owns and manages seven hotels and has another seven under development. RockBridge provided a unique structure to enable OPH to accomplish its capitalization objective for this transaction, as RockBridge funded 89.3% of the total cost. RockBridge is comfortable going high into the capital structure when the opportunity and sponsor are strong, which is the case in this transaction.
Strategically located off U.S. Highway 101 in Thousand Oaks, an affluent suburb located approximately 40 miles west of Downtown Los Angeles, the two hotels are components of a mixed-use development that will include a Chili's Restaurant and a neighborhood retail center. The Thousand Oaks lodging market benefits from significant corporate demand generators such as Amgen, Baxter Pharmaceuticals, J.D. Power & Associates, Countrywide Financial, and Verizon. In addition, there are significantly high barriers to entry as a result of a lack of developable sites and a very lengthy and expensive entitlement process, which should limit future hotel projects.
Commenting on the transaction, James T. Merkel, Managing Director of RockBridge, indicated, "This transaction has the characteristics of the types of investments we consider appealing - high barriers to entry, strong brands, and an experienced owner/operator." Merkel went on to explain, "The Thousand Oaks lodging market is underserved, and the OPH properties are expected to perform extremely well out of the gate as a result."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
