Cronheim Mortgage has arranged $25 million in three-year construction financing for a 48-unit multifamily project and 112-key Hampton Inn & Suites located in Watsonville, California.
The Subject consists of two separate projects. Blackbird Homes, a 48-unit multifamily project property, is located along the south line of Harkins Slough Road. The improvements consist of four distinctive townhouse style unit types ranging in size from 1,350 sf to 2,002 sf in three- and four-bedroom layouts. Currently under construction, Blackbird Homes is expected to receive its certificate of occupancy in 2019.
Surrounding uses in the area consist primarily of residential with supporting community uses and commercial related properties including a Target anchored retail center leased to Food Maxx, Staples, Ross Dress for Less, and Starbucks, among others. Watsonville is a quickly becoming a San Jose bedroom community, one of the fastest growing economies in the country where housing prices are soaring, located only 45 miles north of the Subject. The existing inventory of multifamily in the market is primarily older style condominium units constructed in the early to mid-2000's.
The four-story, 112-room Hampton Inn limited service hotel contains approximately 71,057 square feet of gross building area. Amenities include an outdoor pool, fitness center, complimentary breakfast area, guest laundry facilities, business center, sundry shop, and approximately 792 square feet of meeting space. The property also offers complimentary surface parking for 127 automobiles.
Just south of the intersection formed by West Beach Street and Lee Road, the hotel is located in the Watsonville seaside and farming community near Carmel and the world-renowned Pebble Beach Golf Resort. Indeed, as a beach town, Watsonville draws many visitors from San Jose and the Central Valley areas. Moreover, the hotel is visible and only one block from the nearest on-ramp to Highway 1, the scenic north-south state highway running through Watsonville, providing easy access from various cities throughout Santa Cruz County.