Eagle Four Partners secures loan for Pendry Newport Beach plan

Kevin Martin, Kory Kramer, Joe Moody, Rick Weiner and Todd Pickup of Eagle Four with Pendry Newport Beach (Eagle Four, Pendry, iStock)

Eagle Four Partners has secured a $146 million loan for its project to convert the shuttered Fashion Island Hotel into Pendry Newport Beach.

ACORE Capital provided the first five-year mortgage to the Newport Beach-based company, which used the financing to purchase the property, with the remaining proceeds to be used for renovations, ACORE announced Thursday. Eastdil Secured arranged the financing.

Eagle Four Partners purchased the leasehold interest in the property for approximately $143 million, according to lease documents filed with Orange County.

Formerly known as the Fashion Island Hotel, the property at 690 Newport Center Drive was previously owned by the Irvine Company. The commercial firm closed the hotel in the spring of 2020, due to the coronavirus pandemic, and will retain ownership of the land occupied by the establishment.

As part of its purchase, Eagle Four Partners reached an agreement with Irvine-based Montage International earlier this year to reopen the property under Montage’s Pendry Hotels & Resorts brand. Launched in 2017, there are now nine Pendry hotels across the country, including in West Hollywood and New York.

Hotel sales in Orange County soared in 2021 with 48 hotels traded, compared to 19 hotels in 2020 when the pandemic initially halted transactions, according to hotel brokerage firm Atlas Hospitality Group.

The Eagle Four acquisition already beats the most expensive deal of 2021 – Dynamic City Capital’s $65 million purchase of the 174-room Element Hotel in Anaheim.

Eagle Four is no stranger to hotel ownership. The private equity firm also owns the 532-room Newport Beach Marriott Hotel near Fashion Island, which it plans to reopen under Marriott’s VEA brand this year.

The companies also own the Balboa Bay Club, which includes hotel operations, as well as properties in Irvine, Napa Valley, Santa Ana, Denver, Tempe and New Orleans.

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