Bank of America provides fresh debt on 1,030-key hotel

JUN 25, 2024, 2:30 PM – By Isabella Farr

Tarsadia Investments, run by Orange County hotelier Tushar Patel, has refinanced its 1,030-key Anaheim Marriott hotel. 

The firm scored a $125 million loan from Bank of America on the hotel, located at 700 West Convention Way, adjacent to the Anaheim Convention Center, according to property records filed with Orange County. 

The debt was packaged into a commercial mortgage-backed securities deal, according to Tarsadia executive Alkesh Patel. 

“We’re very happy with the outcome,” Patel said. Terms of the deal were not disclosed.

The loan replaces $110 million in debt from JPMorgan Chase Bank, provided in 2014 and packaged into a commercial mortgage-backed securities deal. TRD previously reported Tarsadia was 90 days delinquent on the loan, based on incorrect servicer information from Trepp, but has since reviewed documents showing the refinancing. 

Patel bought the property in 1999 for about $80 million, marking his biggest deal at that point, the Los Angeles Times reported at the time. 

In 2023, the hotel was making five times what was needed to service the debt, according to Trepp. The hotel averaged 78 percent occupancy, with an average daily rate of $216, according to data from brokerage Atlas Hospitality Group. 

Marriott holds a long-term lease on the hotel, according to property records. 

Tarsadia, based in Newport Beach with an office in New York, has also made investments in real estate platforms including Yieldstreet, according to its website.