THE ISSUE
The property owners held over 40 acres of unentitled land in Paso Robles, California wine country. The owners engaged Corinthian Development Company to entitle and develop the site, and transform the vacant parcels into an attractive investment opportunity.
THE PROCESS
- Identify the land’s highest and most effective use
- Entitle and permit the site
- Utilize strategic relationships and established reputation to engage a major hotel brand
- Identify and place sources of debt and equity capital to support the project
- Oversee and collaborate with owners on project design and construction
- Isolate the hotel and resort on 20 of the 40 parcels to allow for expansion or additional uses in the future
THE PROGRAM
- Significantly increase equity value of the owner’s holdings
- Bring a major branded hotel to the development and secure their commitment to the project
- Work with an investment bank to acquire and negotiate required project capital
- Create an attractive investment opportunity for the owner’s property value and their capital partners
- Work with the City of Paso Robles to enable the entitled project to be placed on 20 of the 40 acres
THE RESULTS
- Entitled and permitted the site for the development of a 224 room hotel
- Increased the owner’s equity interest in excess of 65%
- Significantly increased the owner’s contribution value to a joint venture
- Secured brand’s commitment to the project and negotiated a $1M capital contribution
- Worked with an investment bank to secure acquisition and development capital
- Created the opportunity to invest in a high yielding development project with a projected IRR of over 25% and Equity Return Multiple of over 2.5 times
- Utilized 20 acres opposed to the original 40 acres for the resort, enabling the owners to preserve the remaining 20 acres for future expansion and supplementary revenue generation
Projects are representative of work performed by Corinthian and ADMI employees under Corinthian Development Company or ADMI as well as with prior employers.
