Lending platform Madison Newbond provides $72 million loan for two newly built hotels in Sonoma and Napa Valley


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NEW YORK, April 13, 2022 (GLOBE NEWSWIRE) — Madison Newbond, the institutional lending platform of Madison Realty Capital and Newbond Holdings (“Newbond”) that offers first mortgages, mezzanine loans and preferred stock to homeowners and hotel developers nationwide, today announced it has issued a $72 million loan to Stratus Development Partners for two newly built hotels in Sonoma and Napa, Calif., operating under the Cambria brand. The loan will be used to refinance existing construction loans for the properties.

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Napa and Sonoma counties welcome more than 14 million tourists each year. With high hurdles for local development approvals and rising construction costs, very few competitive new hotels are currently planned or under construction in Sonoma and Napa counties. Hotel occupancy in the regions continues to increase steadily, with hotel occupancy in Sonoma up 32% over the last twelve months and Napa occupancy up 70% over the past year. the same period.

Josh Zegen, CEO and Co-Founder of Madison Realty Capital, said, “California’s renowned wine regions have long been among the top destinations for business and leisure travelers around the world, and these two modern hotels, which are already generating positive cash flow, are well positioned to thrive as demand continues to rebound. We are excited to continue to grow our institutional lending platform and leverage our deep industry relationships in partnership with Newbond to deliver creative and flexible lending solutions to hotel owners and operators in attractive markets.

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Neil Luthra, Founding Partner of Newbond, said, “We are delighted to provide construction financing to Stratus Development Partners, which has successfully built new hotels in Sonoma and Napa Valley, two regions with notoriously strict development regulations. Our partnership with Madison Realty Capital combines their institutional lending platform with our hotel experience and we look forward to building the Madison Newbond platform by identifying and executing new hotel financing opportunities.

The 135-key Cambria Sonoma Wine Country opened August 2020 in Rohnert Park, California, an ideal location for the traveler planning a wine tasting getaway or heading to North Bay for a business trip. The hotel features Northern California-inspired decor and full-service amenities, including a restaurant and bar, a barista bar serving specialty coffee, and flexible meeting space. The 90-key Cambria Napa Valley opened in August 2021 and features a modernly designed two-story lobby and a full-service restaurant and bar. The hotels both feature rooms with contemporary decor, modern artwork, and spa-inspired bathrooms and walk-in showers. Each hotel has a franchise agreement with Choice Hotels International and is operated by San Diego-based Azul Hospitality Group.

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Madison Newbond launched in November 2021 with an initial lending capacity of approximately $500 million and plans to scale up based on existing opportunities. For funding inquiries or to request additional information about the Madison Newbond platform, please contact Andrew Fichte, a Newbond partner, at afichte@newbond.com and Josh Zegen at josh@madisonrealtycapital.com.

Firas Turkmani and Evan Linkner at Ackman-Ziff negotiated financing for Stratus.

About Madison Realty Capital

Madison Realty Capital is a vertically integrated real estate private equity firm that, as of March 31, 2022, manages approximately $8.5 billion in total assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed approximately $20 billion in transactions providing borrowers with flexible and highly customized financing solutions, strong underwriting capabilities and certainty of execution. Headquartered in New York, with an office in Los Angeles, the firm has approximately 70 employees across all disciplines of real estate investment, development and management. Madison Realty Capital has been frequently named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as one of the top construction lenders, among other industry accolades. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.

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About Newbond Holdings

Newbond Holdings, founded by Neil Luthra and Vann Avedisian in 2021, is a real estate investment and operating platform focused on debt and equity investments in several types of real estate products with a focus on hospitality as well as commercial properties. investments in operations and related technology platforms. Newbond partners have completed over $15 billion in debt and equity transactions. As a vertically integrated operating and investing platform, Newbond is uniquely positioned to create significant value beyond the typical investment process through creative structuring, operations and brand development. single and multiple assets.

Media inquiries, contact:
Nathaniel Garnick/Grace Cartwright
Gasthalter & Cie.
(212) 257-4170



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