Newport Beach, CA – July 13, 2016 — Maxim Hotel Brokerage is pleased to have represented SCG America in taking control of the approved Grove District Resort Hotel Development, a mixed-use development project located on Harbor Boulevard within the Anaheim Resort Area, just south of Anaheim Convention Center and Disneyland. Garden Grove’s City Council approved an entity controlled by SCG America as the developer. SCG America is an established and locally based subsidiary of one the largest construction companies in China and the world, with 20 years of experience in the US and significant holdings in NY and the LA area. The project marks their second major investment into Garden Grove, following their 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 of Garden Grove allows a combination of up to three hotels (769 rooms), up to 39,000 square feet of event/meeting space, maximum of 20,000 square feet of restaurant/bar space, several restaurants and structured parking, all on approximately 5 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 on 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 US 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 ground breaking planned in 2018. The local Anaheim area hotel market continues to show growth year-to-date through April, 2016, with increases in both occupancy (up 4.2%) and average daily rate (up 1.6%), according to the latest PKF Trends Report.