LOS ANGELES? Sonnenblick-Goldman Co. has been contracted to secure joint-venture equity and debt financing to help move forward the Pointe-Anaheim development project opposite Disneyland in Orange County, CA. The estimated $480 million project, slated to break ground mid-year 2000, will spread across 29 acres and consist of upscale shopping, restaurants, three hotels, theaters and nightclubs. Developers involved in the project include San Diego-based Excel Legacy Corp. XLG, Phoenix-based Western Asset Management, Anaheim-based DDRM Hospitality, and the Anaheim Center for Entertainment. According to a Sonnenblick-Goldman spokeswoman, a range of interest has been shown by investors regarding the project, for which the real estate investment banking firm is seeking to secure approximately $360 million. Last June, she noted, Pointe-Anaheim received approval from the Anaheim City Council to create the 650,000-square-foot mixed-use project adjacent to the Anaheim Convention Center, which is undergoing massive renovation. Of the planned space, 565,000 square feet will go to retail and restaurants; three live performance theaters will offer combined seating for 4,600 persons; a total of 1,050 rooms will be housed in three hotels; and 5,000 parking spaces are planned. Thus far, the city has provided a $68 million subsidy and Excel Legacy has invested $52 million to get the project rolling. According to Vache Darakdjian of Atlas Hospitality Group, a Costa Mesa, CA-based hotel brokerage and consulting firm, no determination of brands has yet been made regarding the three properties, but he expected them to be convention-type; family-theme; and just a themed hotel. ?Some of the hotels might end up being non-franchised. There?s not that many franchises left in the area,? he noted. There had been speculation of a potential Hilton presence in the project with the involvement of DDRM Hospitality. Stan Castleton of the firm is the owner of the Anaheim Hilton and Towers. However, Darakdjian saw a Hilton flag as unlikely. ?I don?t think a Hilton will go in there. It has the Anaheim, and a Hilton Garden Inn is coming into the area. Probably [Castleton?s] expertise in the area is among the reasons he?s involved.? Castleton could not be reached for comment. Darakdjian also expected Pointe-Anaheim to make an impact on Disneyland, which currently is expanding its presence with the $1 billion California Adventure theme park. ?This is the first competition to Disney as far as retail goes in a long, long time,? said the consultant. ?Is it going to take away from Disneyland dollars? Absolutely. Pointe-Anaheim is going to be sitting right in the middle of all the hotels in the area?hotels encompass approximately 50% of the parameter.? He added visitors would most likely visit both complexes. According to the Sonnenblick-Goldman spokesperson, that will be a good thing. ?Pointe-Anaheim will make the area more of a destination than it already is, and should complement Disneyland. It?s a great opportunity from a development standpoint. The city is putting a lot of money in, and the amount of visitors expected to start coming to the area is approximately 23 million.? To date, the city?s public and private sectors have committed to more than $4 billion in improvements for the Anaheim resort area. This includes: a $1.4-billion expansion to Disneyland; a $1.6 billion infrastructure project to upgrade the I-5 freeway; and more than $500 million for improvement to local streets. Pointe-Anaheim is scheduled for completion in 2002.
