Orlando-based Regal Point Capital should close a multi-million dollar raise by the end of August for a private equity real estate fund focused on new hotel development, and has spots remaining for non-accredited investors, the company's managing partner told GrowthSpotter.
Veteran hotel owner-operator Janak Marolia sold his last hotel property in Orlando this past Tuesday, the 112-key Comfort Inn at 8314 International Dr., for $8.6 million to Hollywood-Fla.-based AD1 Global.
Marolia has been active in Florida hotel development and investment for 40 years, and won the Premier Legacy award from Choice Hotels in May 2015 as a high-performance franchisee.
He's now director of acquisitions with Regal Point Capital, a private equity firm founded in 2013 by his son, Vijay J. Marolia.
Janak still owns three hotel properties in Ocala, one in Deland, and holds shares in a number of new development projects by way of RPC Real Income Fund LP. The fund can raise up to $10 million maximum, and may close to new investors in late August.
"We are working on two new hotel developments, I can't disclose the exact cities yet, though for one we have land under contract," said Janak, who'll be investing a portion of his sale proceeds in the fund. "One will be a Marriott flag, within 75 miles of Orlando, and the other may be a Hilton or Marriott flag, 50 miles from here. Both will be 100- to 110-room properties."
The fund made its first purchase a year ago, a minority equity interest in three hotels in Lake County. It also has an investment stake in a new Candlewood Suites project in Denver.
The fund also holds a minority stake in a new Home2 Suites project in Clermont, which is a joint venture with Premier Resorts & Management, Inc., to be located on the northwest corner of East Highway 50 and Champions Way. The land for that development has been cleared, with the JV now waiting to close a construction loan, Vijay Marolia said.
RPC Real Income Fund LP is a private fund only open to accredited investors, typically those with $1 million or more of net worth. It is allowed to accept a small number of non-accredited investors, of which spots remained open as of Friday, Marolia said.