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AVANA Capital is funding a new hotel construction project in Marina, California that will add permanent and construction jobs to the local economy and provide more options for business and leisure travelers — while fulfilling part of the American dream.
AVANA is providing funding for a $19.5 million project to help local business owner Harbhajan Dadwal realize a significant dream by building a 104-room Marriott Springhill Suites Hotel. Dadwal is a part-owner of other hotels in California and other states and 25 Subway franchises across northern California, but this will be his first ground-up construction project.
AVANA helped Dadwal secure an SBA 504 Green Loan to build the hotel. These loans are commonly used to purchase or construct commercial real estate. The SBA 504 Green Loan program also allows for higher lending amounts for business owners who want to buy or upgrade commercial buildings and make them more energy efficient.
It’s a point of pride for AVANA Capital to help businesses grow and expand with these funds.
In the loan process, there are several boxes loan seekers need to check off. But at AVANA Capital, there is also a series of intangible items that are important and that drive the lender’s decisions. In the case of Dadwal and the Springhill Suites, the firm’s desire to continue to contribute to the American dream – one that rewards entrepreneurs who rise to build a better America in spite of the odds — was a major driving factor.
“This is my dream—to build a hotel in the Monterey area,” said Dadwal. “It’s the first time I’ve put my own ideas and experience to work. I’ve never worked with people like AVANA Capital—they have been so patient and helpful. I was talking to local banks, but someone told me about AVANA and I’ve had a great experience.“
AVANA Capital strives to provide loans that create real job growth and economic impact, and the AVANA team felt this hotel would do that for Monterey County. And, the team had a strong belief in Dadwal’s commitment and unwavering dedication to see this project built for his community and his family. AVANA Capital brings its values to life through working closely with the U.S. Government’s lending tools for the entrepreneurs it serves.
The construction of the Springhill Suites Hotel, slated to open in March 2016, is part of a larger redevelopment effort in Marina. AVANA Capital worked with Dadwal through daunting challenges with the development parameter and timeline.
Dadwal is not new to challenges. A native of India, he worked until he was able to become an entrepreneur in gas stations and Subway shops. Wanting to diversify, he began investing in hotels, including one near his home in the Monterey Bay area.
He eventually came to realize that in the area, and Marina in particular, there are low- and high-end lodging options but not much in between, and had a strong desire to build a hotel aimed to suit this niche.
His choice of location boasts an ocean view and counts Cal State-Monterey Bay as a neighbor. Dadwal’s background of working with local non-profit organizations helped him understand the dynamics of the location. Dadwal is striving to ensure that the new hotel is a full service and luxury destination, complete with a large exercise room, bar, and full kitchen, with the possibility of a restaurant. It will be ideal for weddings and events, with a planned rooftop deck with ocean and mountain views — which no hotels in the area offer.
“Helping owners like Dadwal is what drives us,” said Sanat Patel, Managing Partner of AVANA Capital. “In fact, it is the very reason why AVANA Capital exists—to help entrepreneurs who take risks and help build this country. We believe in America and everything we do is to promote that ideal, that notion of helping those pursuing their dreams, and it’s something we have a passion for.”
The loan was assisted by the Bay Area Development Company, a Community Development Company that helped back the SBA loan.
The project is being constructed by Covenant Construction, which is based in Clovis, California and will provide additional local jobs.
“We are grateful to be working on this project,” said Orville Williams, Managing Partner of Covenant Construction. “It’s going to be a beautiful hotel in a beautiful location. And, it’s putting people to work at a prevailing wage – at least a couple hundred after counting all of the sub-contractors.”