JLL Arranges Five-Year Floating-Rate Loan for Terranea Resort as Lowe and JC Resorts Refinance Iconic California Coastal Property

RANCHO PALOS VERDES, Calif. — Sept. 2, 2026 — Jones Lang LaSalle Americas, Inc. has arranged a five-year floating-rate loan from Barings on behalf of a joint venture between Lowe and JC Resorts for Terranea Resort, a 582-key oceanfront luxury property situated on a 102-acre coastal site on the Palos Verdes Peninsula, roughly 30 miles south of Los Angeles.

The JLL Hotels & Hospitality group led the debt placement, securing the financing from Barings, a global alternative asset manager with $502 billion in assets under management as of June 30, 2026. The transaction represents the latest capital event for a property that cost approximately $480 million to develop and has undergone multiple recapitalizations since opening in June 2009, including a $220 million first-mortgage refinancing in 2013.

Property Overview: Terranea Resort

Located at 100 Terranea Way in Rancho Palos Verdes, Terranea Resort features Mediterranean-style architecture set across marine terraces that rise from sea level to an elevation of approximately 1,450 feet, offering 270-degree views of the Pacific Ocean and Catalina Island. The property holds AAA Four Diamond and Forbes Four-Star designations and has appeared in Hollywood productions including "Pirates of the Caribbean," "The Aviator" and "Charlie's Angels."

The resort's 582 accommodations span traditional guestrooms, suites, bungalows, casitas and villas. Amenities include The Links at Terranea, a nine-hole par-three oceanfront golf course; a 50,000-square-foot spa with 25 treatment rooms — which underwent a $4.5 million renovation announced in mid-2025 — four heated pools with a 140-foot waterslide, a 5,000-square-foot fitness center with an oceanfront movement studio, eight food-and-beverage outlets, a kids club, a secluded beach cove, approximately two miles of bluff-top trails, and 135,000 square feet of indoor and outdoor meeting space.

Current coastal development restrictions and the scarcity of comparable sites make Terranea the only major lodging option on the Palos Verdes Peninsula and the only coastal resort in the Los Angeles area, according to JLL. The property provides drive-to access for more than 17 million people across Los Angeles, Orange, Ventura, San Diego and Santa Barbara counties, with Los Angeles International Airport and Long Beach Airport each approximately 30 minutes away.

Deal Structure and Sponsor Background

The borrowing entity is a joint venture between Los Angeles-based Lowe, a real estate investment, development and management firm that has developed, acquired or managed more than $38 billion in assets over 54 years, and La Jolla-based JC Resorts, which owns and operates independent luxury resorts and golf courses across 22 destinations in California, including Surf & Sand Laguna Beach and Rancho Bernardo Inn.

The five-year floating-rate structure reflects conditions in the current hospitality lending market, where such instruments remain selectively available for top-tier resort assets. Average U.S. hospitality cap rates are running near 8%, while luxury and upper-upscale hotels are posting occupancy of approximately 67.3%, average daily rates near $281 and revenue per available room around $189. CBRE's mid-year projections forecast U.S. hotel RevPAR growth of 2.5% in 2026 and 2.1% in 2027, with occupancy edging toward 63% as average daily rates continue rising.

JB Gerber, Managing Director at Barings, cited the asset's coastal positioning and ownership track record as key factors in the lender's decision. "Terranea stands out for its premier coastal location, strong operating history and experienced ownership," Gerber said. "We are pleased to partner with Lowe and JC Resorts to deliver a tailored financing solution that supports their long-term vision and aligns with our continued focus on well-positioned hospitality properties."

JLL's Role and Market Commentary

The Jones Lang LaSalle Americas, Inc. Hotels & Hospitality team was led by Mike Huth, Shalin Patel and Jade Lewin. Kevin Davis, Americas CEO for JLL's Hotels & Hospitality group, said the transaction reflects both the firm's lender relationships and broader market conditions. "The successful execution of this financing illustrates the depth and breadth of JLL's relationships with institutional lenders as well as the robust current market environment for hospitality credit," Davis said.

Huth noted that lender interest in the deal was driven by the property's site characteristics and sponsor history. "This opportunity was coveted by lenders given the irreplaceable nature of Terranea's 102-acre oceanfront site, impressive in-place cash flow, and the sponsors' proven track record of capital stewardship over more than two decades," he said.

Jones Lang LaSalle Americas, Inc. is a real estate broker licensed with the California Department of Real Estate, license #01223413. JLL's Capital Markets group operates with more than 3,000 specialists in offices across nearly 50 countries.

Market Context

The Terranea refinancing comes as institutional lenders show selective appetite for well-located, high-barrier hospitality assets despite an elevated interest-rate environment. Luxury resort properties with strong in-place cash flow and limited competitive supply have continued to attract debt capital even as broader commercial real estate lending has tightened. The U.S. lodging sector is tracking approximately 62.6% trailing-12-month occupancy, $162 average daily rate and $101 RevPAR across all segments, with the luxury and upper-upscale tier running materially ahead of those averages.

Terranea's history illustrates the capital intensity of large-scale coastal resort development. After opening during the financial crisis, the property navigated early financial stress before stabilizing and completing a $220 million refinancing in 2013. The new Barings facility marks the next chapter in that capital evolution, backed by more than two decades of combined ownership experience between Lowe and JC Resorts.