NEW YORK, April 13, 2022 (GLOBE NEWSWIRE) — Madison Newbond, the institutional lending platform of Madison Realty Capital and Newbond Holdings (“Newbond”) that provides first mortgages, mezzanine loans and preferred equity to hotel owners and developers nationwide, today announced it has originated a $72 million loan to Stratus Development Partners for two newly-built hotels in Sonoma and Napa, California operating under the Cambria brand. The loan will be used to refinance existing construction loans for the properties.
Napa and Sonoma Counties welcome over 14 million tourists annually. With high barriers to local development approvals and rising construction costs, very few new competitive hotels are currently planned or under construction across both Sonoma and Napa Counties. Hotel occupancy in the regions continues to steadily increase, as hotel occupancy in Sonoma has increased by 32% in the last twelve months and occupancy in Napa has increased by 70% in the same period.
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, said, “California’s renowned wine producing regions have long been among the top destinations for both leisure and business travelers globally, and these two modern hotels, which are already cash flow positive, are well positioned to thrive as demand continues to rebound. We are pleased to continue building on our institutional lending platform and leveraging our deep industry relationships in partnership with Newbond to deliver creative and flexible lending solutions to hospitality owners and operators in attractive markets.”
Neil Luthra, Founding Partner at Newbond, said, “We are excited to provide construction takeout financing for Stratus Development Partners, who were able to successfully build new hotels in Sonoma and Napa Valley, two regions with notoriously strict development regulations. Our partnership with Madison Realty Capital combines their institutional lending platform with our hospitality experience and we look forward to building the Madison Newbond platform by identifying and executing on new hospitality financing opportunities.”
The 135-key Cambria Sonoma Wine Country opened in August 2020 in Rohnert Park, California, an ideal location for the traveler planning a wine-tasting getaway or heading to the North Bay for a business trip. The hotel features Northern California-inspired décor and full-service amenities including a restaurant & bar, a barista bar serving specialty coffee, and flexible meeting space. The 90-key Cambria Napa Valley opened in August 2021 and boasts a modern designed, two-story lobby and a full-service restaurant and bar. The hotels both feature guestrooms with contemporary décor, modern artwork, and spa-inspired bathrooms and walk-in showers. Each hotel has a franchise agreement with Choice Hotels International and is operated by San Diego-based Azul Hospitality Group.
Madison Newbond launched in November 2021 with approximately $500 million of initial lending capacity and has plans to add scale in line with existing opportunities. For any financing inquiries or to request additional information about the Madison Newbond platform, please contact Andrew Fichte, a partner at Newbond, at afichte@newbond.com and Josh Zegen, at josh@madisonrealtycapital.com.
Firas Turkmani and Evan Linkner at Ackman-Ziff brokered the financing for Stratus.
About Madison Realty Capital
Madison Realty Capital is a vertically integrated real estate private equity firm that, as of March 31, 2022, manages approximately $8.5 billion in total assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed approximately $20 billion in transactions providing borrowers with flexible and highly customized financing solutions, strong underwriting capabilities, and certainty of execution. Headquartered in New York City, with an office in Los Angeles, the firm has approximately 70 employees across all real estate investment, development, and property management disciplines. Madison Realty Capital has been frequently named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as a top construction lender, among other industry recognitions. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.
About Newbond Holdings
Newbond Holdings, founded by Neil Luthra and Vann Avedisian in 2021, is a real estate investment and operating platform focused on debt and equity investments across multiple real estate product types with a hospitality focus as well as investments in related operating businesses and technology platforms. The partners at Newbond have completed over $15 billion of debt and equity transactions. As a vertically integrated operating and investment platform, Newbond is uniquely positioned to create significant value beyond the typical investment process through creative structuring, operations and the development of single and multiple asset brands.
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Gasthalter & Co.
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