[dropcap]California[/dropcap] Real Estate Regional Center (CaRE), an EB-5 developer, is building two Hyatt-branded hotels on Century Boulevard next to Los Angeles International Airport, according to the Los Angeles Business Journal. The location is currently a parking structure and office building, but thanks to EB-5 capital, it will soon be home to Hyatt Place LAX, a 272-room hotel for short stay business travel, and Hyatt House LAX, a 129-room apartment-style hotel for extended stays.
About 15 hotels are already located on or near Century Boulevard, down the street from LAX. Each hotel brand targets a niche customer, from the luxury business travelers to the budget conscious tourists. The demand for hotels in and near the area is increasing as the number of travelers making their way through LAX increases. In 2017, LAX saw more than 84 million travelers go through the airport, up more than 5% from the previous year. Additionally, LAX is undergoing a 14 billion dollar renovation and expansion that may further encourage local businesses to update decades old structures.
One way development of these real estate projects is made possible is through EB-5 funding. The EB-5 capital is a critical piece of the puzzle that makes financing work. “The project successfully combines EB-5 mezzanine financing with developer equity and senior financing to complete the hotel, creating over 1,000 new jobs in Southern California,” states Steve Shpilsky, Principal of 5959 LLC and Co-Founder of CaRE.
To learn more about California Real Estate Regional Center’s projects or about how they’ve closed more than $230 million from over 450 EB-5 investors, visit here.
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