Loan will go towards construction of the Marriott Residence Inn at Gateway at Millbrae Station
SAN JOSE, Calif., Aug. 11, 2020 /PRNewswire/ -- After seven months of negotiations, in the middle of a global pandemic where construction loan closings for hospitality have been scarce, the partnership of Republic Urban Properties (RUP) and Huntington Hospitality Group (HHG) have announced that they have secured and closed a $42 million loan from Western Alliance Bank (www.westernalliancebancorporation.com). The loan amount will go towards the construction of a 164-room Marriott Residence Inn at Gateway at Millbrae Station.
At a total cost of $95 million dollars, the 164-room Marriott Residence Inn at Gateway at Millbrae Station will be developed and managed by Republic Urban Properties and Huntington Hospitality Group. RUP, HHG and EB-5 Capital of Washington DC have invested over $34 million of equity in what is an overall $500 million investment in the City of Millbrae as part of the overall Gateway at Millbrae Station Project. In December 2019, Republic and Principal Group closed on a $206 million construction loan with US Bank for the residential and office buildings.
"We are absolutely thrilled to see this transformational project move forward for the benefit of the Millbrae community! Securing the construction funding during one of the most challenging times in Bay Area history is a major milestone on this journey to creating a landmark hospitality project with tremendous economic and community benefit for the City of Millbrae for generations to come," said Michael Van Every, Chief Executive Officer, Republic Urban Properties. "Republic is blessed to be working with a partner of the quality of the Huntington Hospitality Group, that remained committed to our vision over six-years, as we made our way through entitlements, the ground lease with BART and financing."
With a track record for success in the development and operation of premier hotels, the Huntington Hospitality Group has developed over 20 hotels, and currently operates 17 hotels throughout the United States.
"Gateway at Millbrae Station will be world-class destination for the region," said President and CEO, Kevin Keefer, Huntington Hospitality Group. "Our hotel will be a major amenity that will allow for travelers from around the world to spend the night at a quality hotel while enjoying one of the best shopping experiences in the region."
Located minutes from the San Francisco International Airport, the Gateway at Millbrae Station development is considered one of the largest transit-oriented developments in the Bay Area. With 157,000 square feet of office space, 320 (300 market rate & 20 inclusionary affordable) market- rate apartments, 80 veteran preferred affordable housing units, and 44,000 square feet of mixed-use retail, Gateway at Millbrae Station, with its proximity to the Millbrae BART and Caltrain stations, will be a model for integrating housing with vital access to public transportation.
SOURCE Republic Family of Companies