Canyon Partners Real Estate provided $15.75 million of preferred equity to a joint venture between Simone Ventures and San Diego Carté Hotel for the construction of Carté Hotel, a 240-room Curio Collection by Hilton boutique hotel in San Diego. Carté Hotel will be operated by Interstate Hotels and Resorts.
Canyon’s experience in hospitality investing includes a diverse nationwide portfolio, having deployed $1.2 billion of capital in over 30 projects, including $380 million invested in the past five years. Canyon’s track record in California includes $1.7 billion of investments across all major property types.
The 14-story, upper-upscale hotel will include 1,662 square feet of ground-floor retail space including a wine shop and a 26,000-square-foot fitness center operated by FIT Athletic Club. The LEED Silver certified property will also have an outdoor pool with food-and-beverage service, a rooftop bar and lounge and a full-service restaurant. A two-level below-grade parking structure will have 118 spaces.
The project is located in downtown San Diego adjacent to the city’s Little Italy neighborhood, and proximate to the famed Gaslamp Quarter, an entertainment and retail destination that draws visitors from around the country. The project is also proximate to the San Diego Convention Center, which hosts over 800,000 visitors annually, as well as numerous other tourist attractions. Additionally, the new $555 million, 22-story, State Superior Court building opening in May 2017, is located one block from the project’s site and there is approximately 4.3 million square feet of office space within a four-block radius. San Diego International airport is located 2 miles from the property.
“As the San Diego market demand for hotel space continues to grow for both tourist and business travelers, Carté Hotel will meet this demand as the only full-service hotel classified as upper upscale in this vibrant neighborhood, and we are pleased to partner with Canyon to deliver this project,” Ried Floco, representing San Diego Carté Hotel, said in a statement.
“The depth and experience of the Canyon team and their outstanding track record in financing hotel development resulted in flawless execution of the transaction, with construction scheduled to begin immediately to complete the project in Q3 2018," Giuseppe Simone, general partner, Simone Ventures and president, Del Mar Investments, said in a statement.