IPA Capital Markets Arranges $38 Million Construction Financing for Element Hotel in San Diego
February 21, 2025
SAN DIEGO, Calif., Feb. 21, 2025 – IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI), has secured $37.9 million in construction financing for the development of the Element by Westin Mission Valley, a 148-key extended stay hotel located in the Mission Valley neighborhood of San Diego, California.
Jordan Ray, Jamie Matheny, Steven Buchwald, and Rachael Krawiecki of IPA Capital Markets secured the financing from Fifth Third Bank on behalf of the sponsor, Driftwood Capital, a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality properties.
“Driftwood has done a great job with the existing Marriott Mission Valley, and the new Element by Westin takes it to the next level,” said Ray. “By integrating shared amenities, they’re creating a stronger offering and unlocking even more value in the market.”
Upon completion, the hotel will include 148 suite-style rooms, over 5,000 square feet of meeting and event space, a fitness center, a courtyard, a lobby bar and lounge, and a restaurant. Driftwood Capital currently owns the adjacent hotel, Marriott Mission Valley, which was purchased in 2019 with the adjacent development parcel with plans to renovate the existing property and later develop an extended-stay hotel that would benefit from Marriott’s amenities, resort-style pool, and parking. The Element by Westin Mission Valley will occupy 1.5 acres and is expected to be completed by the end of 2026.
Jordan Ray, Jamie Matheny, Steven Buchwald, and Rachael Krawiecki of IPA Capital Markets secured the financing from Fifth Third Bank on behalf of the sponsor, Driftwood Capital, a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality properties.
“Driftwood has done a great job with the existing Marriott Mission Valley, and the new Element by Westin takes it to the next level,” said Ray. “By integrating shared amenities, they’re creating a stronger offering and unlocking even more value in the market.”
Upon completion, the hotel will include 148 suite-style rooms, over 5,000 square feet of meeting and event space, a fitness center, a courtyard, a lobby bar and lounge, and a restaurant. Driftwood Capital currently owns the adjacent hotel, Marriott Mission Valley, which was purchased in 2019 with the adjacent development parcel with plans to renovate the existing property and later develop an extended-stay hotel that would benefit from Marriott’s amenities, resort-style pool, and parking. The Element by Westin Mission Valley will occupy 1.5 acres and is expected to be completed by the end of 2026.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.