Martis Valley Lodge
Truckee, CA
Located in Truckee, CA, a popular recreational destination for Bay Area travelers. The property is situated near popular tourist attractions and prime destinations such as Northstar and Palisades Tahoe ski resorts, Martis Camp, downtown Truckee, and a host of outdoor activities. Conveniently located near major transportation routes including I-80, CA 267, the Truckee Airport, as well as newly constructed bike lanes.
Asset Type
Hotel
ACQUIRED
December 2023
Scope
109 Keys
Key Investment Thesis
Opportunity to develop a well-located hotel in a high growth and burgeoning lodging market, providing highly attractive annual cash flow returns for investors.
- Post development recapitalization providing opportunity for new investors to participate in return growth as the hotel reaches stabilization
- Rare off-market ground lease opportunity sourced through the Reno-Tahoe Airport Authority, with development option for adjacent land
JMA Value Creation
JMA developed the project on schedule and on budget, successfully delivering the hotel at an attractive basis. JMA then provided significant value for its “Phase 1” investors by recapitalizing the hotel in August 2022, with 4x gross returns on initial investor equity.
Quickly ramped up asset towards stabilization, despite hotel opening only months after the onset of the pandemic
Successful Phase I exit with substantial investor returns, while allowing Phase 2 investors to participate in continued upside as the property nears full stabilization
Negotiated accretive ground lease with Reno Airport Authority that features zero property tax
Managed full development and operation process from inception to hotel opening, delivering on budget in a volatile construction market
