April 28, 2014 (SAN DIEGO)—Lankford Phelps Portman, a real estate joint venture comprised of Portman Holdings, Lankford & Associates and Hensel Phelps, announced today that it has secured financing for a hotel development at Lane Field, a site owned by the Unified Port of San Diego. AIG Global Real Estate Investment Corp will serve as limited partner to the development venture, while U.S. Bank will provide construction debt financing.
The development will include a 253-room SpringHill Suites and a 147-room Residence Inn, in addition to approximately 27,000 square feet of retail space and more than 400 parking spaces. SpringHill Suites is a select-service brand while Residence Inn is an extended-stay brand, both in Marriott’s portfolio. The project’s hotels will have a unique design approach that creates superior and differentiated guest experiences at each property. John Portman & Associates will provide architectural services, supported locally by Joseph Wong Design Associates.
“The Lane Field project is thrilling for a lot of reasons: it’s on an unbeatable site that affords us the privilege of working with the Port of San Diego and AIG once again; both hotels are strong brands; and we’re part of a fantastic development team,” said Ambrish Baisiwala, CEO of Portman Holdings. “Portman has a long history in hospitality development, and this will be another world-class project to add to our track record.”
“The Port of San Diego is looking forward to the transformation of the Lane Field property – one of the most historic landmark sites in San Diego – with a high quality hotel and public park along Harbor Drive,” said Chairman Bob Nelson of the Board of Port Commissioners. “This hotel development helps fulfill our vision for a vibrant waterfront.”
The development site is located on N. Harbor Drive across from San Diego’s new cruise ship terminal—part of the city’s North Embarcadero Visionary Plan. Development plans include an approximately 1.6 acre public park with access to the waterfront.
“We are very excited to bring this dual branded property to Downtown San Diego,” said Janis Milham, senior vice president, Modern Essentials and Extended Stay Brand Management, Marriott International, Inc. “Both brands are well suited for business and leisure guests. Residence Inn is an extended stay power house, known for its unique service and amenities, while SpringHill Suites’ design and style are refreshing and popular in the select-service space.”
“As one of the top banks in the San Diego area and one of the largest commercial real estate lenders in the country, U.S. Bank is proud to finance the development of these two bay front Marriott flagged hotels,” said Jim Nigro, market manager for U.S. Bank Commercial Real Estate in San Diego.
General contractor Hensel Phelps plans to break ground immediately and the project will open in early 2016.
About Portman Holdings
This project is a continuation of Portman Holdings’ work in San Diego. The company previously developed the Hilton San Diego Bayfront by the San Diego Convention Center. Throughout the past 60 years, Portman Holdings has developed over 50 million square feet of premium real estate around the world with a focus on hospitality, office and mixed-use properties. The vertically integrated real estate development, investment and management company commands a successful global network and has a proven track record with the world’s top financial institutions. Teams in the company’s global offices seamlessly connect to develop, finance and manage a diverse portfolio in the world’s core and emerging markets. Portman Holdings continues to achieve success through investor, partner, and client relationships that deliver exceptional real estate projects. For additional information, visit www.portmanholdings.com and follow the company on Twitter via @PortmanRE.
About Lankford & Associates
Lankford & Associates, LLC, (www.lankfordandassociates.com) was founded in 1982 to acquire, develop and manage commercial property in Southern California. Headquartered in San Diego, Lankford & Associates has completed more than 4.4 million square feet of development at a total value of $1.2 billion. The family-owned and -operated company is experienced in developing large-scale commercial real estate projects, including Class A office buildings, government facilities, biotechnological and medical facilities and mixed-use residential projects. Its projects, including current redevelopment of a five-block area in San Diego’s East Village, known as Makers Quarter, focus on transit, walkability and livability that include places for businesses and most importantly, people to thrive.
About Hensel Phelps Development
HENSEL PHELPS Plan. Build. Manage. From planning and design, to construction, and facility management, Hensel Phelps work to solve their clients’ challenges from start to finish, and beyond. Hensel Phelps clients, both domestic and international, have entrusted them with a tremendous range of landmark projects, in nearly every market sector. Established in 1937, the employee-owned company delivers value through their People, Processes, Partnership and Technology, collectively recognized as The HENSEL PHELPS Way. Visit www.henselphelps.com and follow the company on Twitter via @HenselPhelps
About John Portman & Associates
John Portman & Associates, Inc. (JPA) is an internationally renowned architectural design firm with offices in Atlanta, Georgia and Shanghai, China. Established in 1953, JPA has over 60 years of expertise in designing hotels, residences, offices, universities, exhibition centers and mixed-use urban complexes. JPA projects can be seen in more than 60 cities worldwide. The firm’s architecture transcends national borders by striving for universal human appeal, delivering a memorable experience for users and maintaining a sound investment for owners and operators. For more information on John Portman & Associates, visit www.portmanusa.com and follow the company on Twitter via @JPortmanAssoc.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $371 billion in assets as of March 31, 2014, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,083 banking offices in 25 states and 4,878 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.
Katie Shuford – Edelman, Corporate