Midas Hospitality and InSite Development to Develop Residence Inn in Lancaster, California
After successfully raising $35 million in only four months for its first opportunity zone project, Midas Hospitality is going westward to stake its next claim.
Midas Hospitality, a leading hotel development, management and investment firm, recently announced its second opportunity zone fund that seeks to raise $12 million for a new Residence Inn located in Lancaster, Calif.
Midas will co-develop the $25 million, 107-room hotel along with Los Angeles-based InSite Development. Located at 857 W. Lancaster Blvd. in Lancaster, Calif., the hotel has a targeted groundbreaking date in late 2019 with a grand opening set for early 2021. Midas - which will manage the Residence Inn once it is built - currently owns and manages 38 hotels with eight more hotels to be added to its portfolio in the near future.
The Lancaster community is home to a thriving aerospace community that includes The Boeing Company, Lockheed Martin, and Northrop Grumman Corporation. Awarded the "Most Business-Friendly City" by the Los Angeles County Economic Development Corporation, Lancaster is on the northern edge of Los Angeles County in the heart of the Antelope Valley.
The Tax Cuts and Jobs Act (TCJA) recently created a new law which provides tax incentives for opportunity fund investments like Midas Hospitality's Lancaster project.
"We're excited to bring our approach of people, properties and informed investments to the west coast," said Midas Hospitality's Co-Founder and Managing Partner J.T. Norville. "We're eager to bring together a wide variety of investors to generate meaningful returns and significant tax benefits afforded by the Opportunity Zone legislation for the second time."