A new 105-room luxury hotel near Santa Barbara’s East Beach, which was approved by the city back in 2019, is set to begin construction after the hotel’s developer, Stratus Development of Newport Beach, received $16.5 million in financing in a deal arranged by Concord Summit Capital.
The “Marriott Tribute Hotel,” which will be built on a parcel on Hutash Street tucked between Highway 101 and the railroad tracks, will be three stories tall and feature rooftop amenities. The project went through a grueling design process with more than a dozen meetings with the city’s Architectural Review Board before officially receiving approval from the board on October 17, 2019.
Stratus Development Partners worked with Concord Summit Capital — a firm that specializes in connecting capital sponsors with potential real estate developments — to secure the 30-year loan with a trio of lenders from Nuveen Green Capital. The construction financing covers the costs for energy improvements, advanced building envelope, electrical, mechanical, and seismic systems.
The hotel will be built on less than an acre on a parcel at 926 Hutash Street, situated near the Highway 101 South Milpas off ramp — just steps away from Tri-County Produce Company and the Hilton Santa Barbara Beachfront Resort. Property records show the parcel was previously used as an auto-repair, storage, and car wash.
Concord Summit Capital Managing Director Tyler Beauregard said the project’s proximity to East Beach and the Funk Zone — with a generous mix of restaurants, wineries, breweries, and art galleries — will likely make the hotel a prime location for visitors. He noted that Stratus Development, founded by partners David Wood and Andrew Wood, has already built a strong portfolio with more than $1.59 billion in development projects.
“This is another great project from the Stratus Development team, which is positioned to elevate Santa Barbara’s hospitality offerings,” Beauregard said. “Given the project’s location in Santa Barbara and the sponsor’s track record for quality hotel developments, there was significant interest from the [Commercial Property Assessed Clean Energy] lending community.”
Construction will begin later this month, and the Marriott Tribute Hotel is expected to open to the public in two years.
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