NEWPORT, CA—Maxim Hotel Brokerage represented SCG America in taking control of the approved Grove District Resort Hotel Development, a mixed-use development project located on Harbor Blvd., within the Anaheim Resort Area, according to the company.
The city council in Garden Grove, CA, approved an entity controlled by SCG America as the developer. SCG America is a locally based subsidiary of a construction company with 20 years of experience in the U.S., and significant holdings in New York and the Los Angeles area. The project marks its second major investment into Garden Grove, following the purchase of the nearby Hyatt Regency in October 2015.
According to Mayor Pro Tem Steve Jones, “By unanimous vote, the Garden Grove City Council has approved the largest and most exciting project ever to be developed in the city’s history and we are thrilled to welcome SCG America with open arms.”
The development agreement with the city allows a combination of up to three hotels, 769 rooms; up to 39,000 sq. ft. of event/meeting space; a maximum of 20,000 sq. ft. of restaurant/bar space; and several restaurants and structured parking, all on approximately five acres.
According to Harry Pflueger, principal with Maxim Hotel Brokerage, “This development project is an excellent example of a public-private partnership between a major Chinese developer and a city that has built a strong track record of welcoming first-class development to its community.”
Greenburg Traurig shareholder Eudeen Y. Chang, who led the legal team during the acquisition noted, “SCG America’s local team and presence, combined with its ownership of the Hyatt Regency Garden Grove and 20 years of experience doing business in the U.S., help to make SCG America the perfect investor to see this development through to completion.”
SCG America will continue the planning and programming process that is already underway, with a groundbreaking planned in 2018. The Anaheim area hotel market continues to show growth year-to-date through April, with increases in both occupancy, up 4.2%, and average daily rate, up 1.6%, according to the latest PKF Trends Report.