Peter Pasqua
Developer Columbus Pacific has secured construction financing for the Pendry Park City, a sprawling mixed-use development in Canyons Village. Mosaic Real Estate Credit provided $165 million in construction financing for the project. In general, construction financing has been conservative across product types as the cycle has matured. This hotel project, however, is expected to revitalize the Canyons Village market.
“Having an opportunity to provide construction proceeds that allows the Pendry Park City to become the best-in-class project that will anchor the overall master plan for Canyon Villages is exciting,” Peter Pasqua, SVP of Mosaic Real Estate Investors, tells GlobeSt.com. “The strength and development experience of the sponsorship, as well as a high barrier to entry market with strong demand drivers made the project a fit for Mosaic.”
The 2.5-acre development will include a 233-room luxury resort with guestrooms and suites, 152 residences with units ranging in size from 446-square-foot studios starting at $395,000 to spacious 2,600-square-foot four-bedroom penthouse residences up to $3.65 million. The property will also include 40,000 square feet of commercial space and additional amenities, like a fitness center.
Already, the project has hit buyers' radar. The property has $95 million in reservations in the residence types, from studios to four bedrooms, highlighting the demand. “The area has overwhelming demand as evidenced by the high level of interest and presales for the project,” says Pasqua. “In fact, Park City is becoming a more year-round destination. Park City is obviously known as a world-class ski destination and home to the Sundance Film Festival, but it also has miles of trails for hiking and mountain biking, has abundant fly-fishing, and is home to a number of championship golf courses.”
While construction financing in the market is generally conservative, Mosaic is actively lending on construction deals. “Mosaic is active in providing construction financing on various asset classes filling a void in the market,” says Pasqua. “Here at Mosaic, we finance borrowers that are looking to add value to properties via predevelopment, development and repositioning.” The Pendry Park has a three-year senior construction loan with two 12-month extensions.
Still, this is a liquid market with plenty of competition. “It is a competitive market and we at Mosaic strive to provide financing solutions that work for borrowers and be as flexible as possible with structure,” says Pasqua.
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Kelsi Maree Borland
