Sugar Land, Texas
TYPE OF OWNERSHIP
As a principal, JMS capitalized this 300-room, full-service conference center hotel, with equity, debt, and mezzanine financing. In addition, JMS arranged the sale of the hotel and dissolution of the ownership entity.
- Burning Pear - a signature restaurant by celebrity chef Grady Speers
- Adjoining Starbucks
- Lobby lounge & bar
- 26,500 square feet of banquet and meeting & exhibit space including a 15,500 square foot Grand Ballroom
- Concierge lounge & concierge guest rooms
· Business Center
- Retail shop
- Outdoor pool
- Health club
- 525 space parking deck
The Sugar Land Marriott is a new landmark just minutes southwest of Houston where contemporary comfort and classic Texas charm converge. It captures the warm ambience and stately elegance of the historic sugar plantation. The Marriott Hotel serves as the centerpiece of the $200 million mixed-use Sugar Land Town Square. This thirty-two acre development includes the hotel and conference center, office space, retail shops, apartments, structured parking and the new Sugar Land City Hall. It is located at the intersection of US Highway 59 and Texas Highway 6: one on the busiest intersections in Fort Bend County.
The $54.35 million project received public investment (tax increment) totaling $19.3 million (the cost of the conference center and parking structure). The balance of the required funding came from $7.3 million in private equity and mezz debt and $27.75 million in conventional debt.
The entire structure was condominiumized with the conference center and parking structure owned by the City of Sugar Land and leased to the hotel owner pursuant to a ninety-nine year lease. The City Lease provides for a nominal base lease payment of one dollar per year, with incentive rent calculated as a percentage of cash flow and/or sale proceeds above an unleveraged 15% cumulative return on private capital.