Real Estate Weekly
Image default
Deals & Dealmakers

Lotus Arranges Breakthrough $130mm Construction Financing For Ritz-Carlton Reserve In Costa Rica

Lotus Capital Partners, LLC (“Lotus”), a boutique real estate capital advisory firm, announced today that it has successfully arranged and structured a $130 million construction financing package for Nekajui, a Ritz-Carlton Reserve Hotel & Residences (“Property”) on behalf of a joint-venture affiliate of Gencom and Mohari Hospitality (“Sponsorship”).

The mixed-use hotel and branded residential development is slated to be one of the most luxurious resort travel destinations in the Americas and the keystone of the wider Peninsula Papagayo master community. Sponsorship plans to develop the Property within the Peninsula Papagayo community in Costa Rica, a 1,400-acre master planned resort community along Costa Rica’s northern Pacific coast, a market noted for its strong North American tourism demand and high barriers to entry.

The Property will consist of an elevated ultra-luxury boutique resort and branded residences consisting of 107 guest rooms and suites and 36 premier luxury residential estate homes and villas ranging from 2,200 to 6,300 square feet. The Property’s residences are currently more than 70 percent sold, accounting for approximately $180 million in total sales at price points ranging between $3 million and $13 million. Ideally situated on a quiet stretch of protected beach, the Property will feature lush gardens and a cascading infinity pool overlooking the Pacific Ocean. Amenities will include a private beach club and on-site spa, three Ritz-Carlton Reserve dining concepts, and a hanging bridge, offering guests an up-close look at Peninsula Papagayo’s native tree canopy.

The $130 million floating rate financing to develop the Property was comprised of a senior syndicate of three lenders led by local Costa Rican bank, Banco BCT, and structured with a mezzanine tranche provided by Monroe Capital.

This development follows on the heels of a $191 million floating rate financing package on the Four Seasons Resort and Hyatt Andaz properties within the same Peninsula Papagayo community that Lotus structured and closed on August 26th of this year.

“This closing continues to cement our brand as the leading capital arranger for large, special-situations-style capitalizations on behalf of institutional clients. To raise construction financing in Central America in a volatile economic environment is an achievement we are very proud to have played a part in,” said Faisal Ashraf, Lotus Managing Partner. He added “This represents one of rare occasions where US capital has been raised for development financing in the region. Like the Four Seasons Costa Rica financing that we arranged from Blackstone, lenders were drawn to the institutional sponsorship, an incomparable asset, and the proven business plan of the Four Seasons next door”.

“Our experience in working with Lotus Capital Partners on this transaction was second to none,” said Gencom Founder and CEO, Karim Alibhai. Mr. Alibhai added, “the team at Lotus is among the best in the business at executing complex capital structures and we greatly valued the firm’s creativity, dedication, and professionalism throughout this process.”

Related posts

Avison Young arranges 99-year ground lease for an estimated $21.5 million


Rosewood Realty Group Brokers $36.5 Million Sale of 15-Story Hells Kitchen Mixed-Use Building


Miller Construction Begins Work on an 80,000-Square-Foot Build-to-Suit Industrial Warehouse in Orlando