Project Feasibility and Due Diligence, for Resort Hotel
As a real estate consultant, a project feasibility study and due diligence review was prepared for the proposed Monterey Plaza resort hotel, to be located in Monterey, California.
Our development consulting work included an analysis of market support for the project, hotel financial projections, preliminary capital budget, an entitlements and permitting assessment, and facility recommendations for the planned hotel development. Meeting space and meeting room configuration recommendations included an overall sizing recommendation, at 18,000 to 20,000 SF of space.
The site for the resort hotel was situated along a rocky beach overlooking Monterey Bay, in the Cannery Row district of Monterey. Cannery Row is the historic waterfront street which at one time was the site of a several sardine canning factories, the last of which shuttered in 1973. Cannery Row was made famous in a 1945 novel set during the Great Depression, by author John Steinbeck. Monterey’s Cannery Row district is also home to the famed Monterey Bay Aquarium.
Subsequent to preparation of the project feasibility study and due diligence, and full project design, this 290-room resort hotel was built and opened as one of the premier independent properties of the Monterey (California) region. The hotel is located at 400 Cannery Row in Monterey, California and is now operated by Woodside Hotel Group.
Huntington Hotel Pasadena
Feasibility study for required capital improvements program related to the Huntington Hotel Pasadena (subsequently rebuilt as the Ritz-Carlton Hotel Pasadena, now The Langham). The hotel, owned by a major Japanese investment and development organization, was determined to require major life-safety (earthquake reinforcement) upgrades as well as wide-ranging improvement to guest areas including rooms and restaurants.
Our hotel consulting work included a market study, financial projections, capital improvements budget review, and an investment performance evaluation to justify required capital items. The objective was to determine the overall feasibility of various disposition, reconstruction, or substantial renovation alternatives in connection with a pre-litigation evaluation of Owner’s options.
Hotel later rebuilt as the Ritz-Carlton Huntington Hotel.
Feasibility Study for Affordable Housing Project
Feasibility study for affordable housing project then known as the Rodeo La Cienega Redevelopment Project Area (Cameo Woods) in Los Angeles, California. Our work as local government real estate consultants included a market study with financial analysis, along with select due diligence review, for the proposed condominium conversion of a 384-unit rental housing community.
The developer for this 27-acre redevelopment project was Hotel del Coronado Corp. (San Diego). The Community Redevelopment Agency of the City of Los Angeles was the public agency involved with this affordable housing initiative. The Community Redevelopment Agency of the City of Los Angeles was a local community redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal community development grants. The State of California dissolved all such community redevelopment agencies in June 2011. When it was first established in 1948, the Community Redevelopment Agency of the City of Los Angeles was dedicated to revitalizing, refurbishing, and renewing economically depressed areas of the City of Los Angeles.
Our project feasibility study was used to support the financing for the project, provided through the State of California SB-99 mortgage revenue bond program. California law in the 1980’s authorized both state and local governmental entities to issue tax-exempt mortgage revenue bonds (“MRBs”). The proceeds from the sale of these bonds was used to provide financing for the development of housing at interest rates that were below prevailing market rates. At the time, State law generally restricted availability of this subsidized financing to low- and moderate-income households.
Subsequent to our feasibility study for this affordable housing project the SB-99 mortgage revenue bonds were issued and the developer proceeded with the condominium conversion of the former apartment community. The residential community is situated adjacent to the region’s Baldwin Hills community.
Our work with local governments includes real estate consulting in connection with affordable and workforce housing programs.
Development Consultants for Resort Hotel
Development consultants for resort hotel project in California, in the Buellton (Solvang) area of the Santa Ynez Valley. Our work included a market and financial feasibility study for the project, with facility and branding recommendations. Meeting space recommendations called for approximately 15,000 to 17,500 SF of space, later designed at built at 14,750 SF.
The work product was prepared to support the financing of this to-be-built resort hotel. The largest feasibility question for the project was its potential market capture given its location just outside the major concentration of Solvang hotels. Despite being outside the Solving central business district, hotel project was to be situated with substantial visibility and adjacency to Interstate 101, one of two major entries to the Solvang tourist district.
Our work here as hotel project development consultants included lodging brand “flag” alternatives for this 175 to 200 room property, for owner consideration. The initial assessment at the time, was that the potential guest demographic and hotel operator reservations system, was best met with the Holiday Inn brand.
The Buellton area is situated just west of the scenic themed Danish community of Solvang, California. Both communities are located in the Santa Ynez Valley region of Santa Barbara County, a closely-controlled urban growth area.
Following our here as hotel development consultants for this resort hotel, the hotel was developed and opened as a 163-room Holiday Inn, and later re-flagged as a Marriott Hotel. The property is located at 555 McMurray Road in Buellton, California.