Dealmaker: Hall Structured Finance Closes $26M Construction Loan For Park James Hotel

Hall Structured Finance, Dallas, closed a new $26 million construction loan for the Park James Hotel in Menlo Park, Calif.

Pollock Realty Corp., Portola Valley, Calif., is developing the 61-key boutique hotel with a May 2018 scheduled opening date. 

Hall Structured Finance President Mike Jaynes said the Park James Hotel represented an opportunity to finance a high-end boutique hotel close to Stanford University “and the headquarters of some of the world’s most influential companies in neighboring Palo Alto.”

Upon completion, the Park James Hotel will include a landscaped courtyard to accommodate outdoor meetings and events and 1,200 square feet of indoor meeting space. Broughton Hotels, Anaheim, Calif., will manage the asset.

Jeff Pollock, Senior Vice President of Pollock Realty Corp., said hotel guests will be able to walk to nearby downtown Menlo Park and easily access large Silicon Valley businesses including Facebook and Google.

With this deal, direct private lender Hall Structured Finance has closed more than $160 million in construction loans across the country this year. This financing represented the firm’s third California construction loan this year; it lent $42 million in August to develop two Cambria Suites hotels in Napa Valley and Sonoma County.

Jaynes said the Hall Structured Finance loan program is designed to provide real estate owners, operators and developers with an alternative to bank financing and is oriented toward projects that may be underserved by institutional capital markets including construction financing for hotels, multifamily, student housing, condominium and speculative office development.