Real estate investing platform CrowdStreet is releasing its latest offering today for a hotel renovation project that is located in the historically hot real estate market of Santa Monica, California. With a minimum investment of just $25,000, investors can be a part of this $26 million project that has an expected internal rate of return (IRR) of 20%.
Investment Highlights: Known since 1933 as Santa Monica’s First Lady, the Georgian Hotel is one of the most recognizable and iconic landmarks in Santa Monica because of its Art Deco design and prominent location along Ocean Ave. As a result, the property possesses a reputation as part of Santa Monica’s most historic and exclusive hotels. Thus, the renovations will position the iconic property as a staple, iconic lodging destination for a long time to come.
Furthermore, of the 84 guest rooms with luxury amenities, 14 are ocean-facing suites and 14 are signature suites with scenic city views – totaling 33% of the total rooms. The high density of prime suites will allow for The Georgian to charge significantly higher rates in comparison to other hotels among the competition.
Santa Monica is an extremely high barrier-to-entry market because of a myriad of factors. Hotels near the ocean are required to go through lengthy Coastal Development Permit processes, and the land basis for real estate can be cost prohibitive. As such, demand growth for the Santa Monica submarket has consistently outpaced supply growth.
- Minimum investment: $25,000
- Target investor IRR: 20%
- Target equity multiple: 2.3x
- Target average annual cash yield: 8.5%
- Target investment term: 5 years
View Offering Details on CrowdStreet
About the Sponsor: BLVD, the sponsor of this deal, is a highly respected and successful real estate developer in California. With $550 million plus in developed real estate, BLVD has made a lasting impact on the communities where it has focused its efforts.
BLVD’s extensive experience developing brands, lifestyle hospitality properties and private members’ clubs throughout Los Angeles has allowed it to build a network of programming strategists, event planners, cultural tastemakers, brand partnership ambassadors, social media strategists and content producers. These impactful and differentiating components for lifestyle hospitality will facilitate the ability for The Georgian to deviate significantly from the competition.
Photo: Courtesy of CrowdStreet
