The Los Gatos Motor Inn gets a facelift and a new name, the Inn of Los Gatos
San Jose, CA (December 19, 2013) —Technology Credit Union (Tech CU) is ending 2013 as formidably as it began: with strong loan growth in its commercial real estate loan portfolio. The San Francisco Bay Area credit union recently closed a $10 million commercial real estate loan to Pelio & Associates, providing long-term financing for the Los Gatos Motor Inn located on Los Gatos-Saratoga Road.
One of Silicon Valley’s most successful real estate developers, Pelio & Associates has constructed an 8,700 square-foot commercial building on the property in front of the hotel, and they have completed phase one of renovations to the hotel itself. Phase two, including extensive guest room and interior refurbishment and upgrades, is expected to be finished by February 2014. When complete, the renovations will transform the Los Gatos landmark into a higher-end property that delivers the kind of experience guests who stay in the small, affluent town expect from their accommodations. The hotel is also rebranding under the name Inn of Los Gatos.
“This is exactly the kind of project we want to pursue — financing regional, niche real estate projects for experienced borrowers who have a deep understanding and knowledge of local market dynamics,” said Tech CU Chief Banking Officer Joe Anzalone. “Larger, national lenders can tend to avoid specialty projects like this one, but we didn’t hesitate to embrace the opportunity, given our respect for the sponsorship. I’ve had the opportunity to lend to these principals on many projects over a 20-year period and have seen their skillful approach to real estate development proven time and again. This type of loan also complements our overall portfolio strategy very well.”
As a community financial institution, Tech CU offers developers an alternative to large, national lenders for commercial real estate loans. The credit union’s decision-making occurs at its San Jose headquarters, giving the lending team more flexibility and speed in offering unique solutions customized to the financing requirements of Bay Area businesses and organizations like Pelio & Associates.
“Our projects succeed because they’re grounded in detailed, strategic planning and strong relationships that support us along the way,” said Jon Shank, a partner at Pelio & Associates and part of the team overseeing redevelopment for the Inn. “Our firm has worked with Joe Anzalone for more than 25 years and we appreciate the expertise he and his colleagues offer. Their knowledge of financing in the Bay Area market is invaluable to us. It makes for a win-win on both sides.”
Tech CU’s commercial real estate loans can be used for real estate acquisition and refinancing, including: owner-occupied and investor-owned office, mixed-used properties, warehouse, light industrial, retail and multi-family properties. For more information, contact Tech CU at 800.448.1467.
Founded in 1960 by the employees of Fairchild Camera and Instrument Semiconductor Division, Tech CU has served the high tech workforce in Silicon Valley for more than 50 years. Today, Tech CU is one of largest credit unions in the country with 70,000 individual, non-profit and business members and more than $1.7 billion in assets. The financial institution is recognized as one of the best managed and strongest in the country. Tech CU’s members have access to 65,000+ surcharge-free ATMs nationwide, online and mobile banking, 10 full-service branches throughout the Bay Area, and comprehensive mortgage, wealth management and commercial banking services.
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