ORIX Provides Non-Recourse, New Construction Financing for Two California Hotels

  ORIX Provides Non-Recourse, New Construction Financing for Two California

Business Wire

DALLAS -- April 29, 2013

ORIX Public Finance (ORIX), an active investor and proprietary lender to the
public and private sectors,  announced today that it has provided a $41
million non-recourse loan to fund the construction of a 147-room Hilton Garden
Inn and a 172-room Residence Inn by Marriott in Redondo Beach, California. The
hotel campus will be constructed over a 13-month period with both hotels
scheduled to open in the spring of 2014. The development is a public-private
partnership between Mogul Capital, LLC and Trancas Retail Center Fund, LLC
from Park City, UT and the City of Redondo Beach, where the City will provide
a ground lease for the land used for hotel parking and pledge up to 40 years
of the hotels’ transient occupancy taxes as security for the construction
loan. Summit DCK of Phoenix, AZ will construct the hotels and Evolution
Hospitality of San Clemente, CA will provide management oversight for the
operations of the hotels after completion of construction.

“This is ORIX’s first new hotel construction loan since the economic downturn
of 2007 and is indicative of our company’s interest in becoming a more active
lender in this space,” said Lisa Sexton, director of ORIX.

“Because we invest our own capital, ORIX offers more flexibility to borrowers,
such as non-recourse loans with higher leverage, prepayment options and longer
terms,” added Sexton. “The three-to-seven year loans offered by ORIX may
eliminate the need for hotel developers to obtain multiple, costly
refinancings during the ramp-up period for their projects.”

ORIX is particularly interested in loans for public-private partnerships in
amounts of $10 to $50 million; however, larger loans will also be considered.

“An added benefit offered by ORIX is the ability to help hotel developers
identify and maximize public support for projects, such as tax rebates,
credits or abatements that can be pledged to projects,” added Sexton. “Our
experience working with municipalities equips us to help hotel sponsors
uncover value that more traditional lenders might not recognize or accept.”

About ORIX Public Finance Group

ORIX Public Finance Group, a business unit of ORIX USA, has specialty lending
capabilities in the hospitality and real estate areas in addition to all forms
of municipal transactions. The Group uses its experience, resources and risk
management and trading skills to be an active investor in, and proprietary
lender to, the public, private and nonprofit sectors.

ORIX USA is a Dallas-based financial conglomerate with more than 1,400
employees and primary offices in Dallas, New York, Los Angeles, Columbus and
Minneapolis. ORIX USA holds approximately $6 billion of assets and manages an
additional $25 billion. ORIX USA is a wholly owned subsidiary of ORIX
Corporation, a Tokyo-based, publicly owned international financial services
company with operations in 28 countries worldwide. ORIX Corporation is listed
on the Tokyo (8591) and New York Stock Exchange (IX). www.orix.com


For ORIX Public Finance
Shelby Sabin Menczer, 972-931-7576 x 353
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