SAN RAFAEL, CA – LRE & Companies, a real estate development, asset manager, construction, and hotel management company, has revealed the plans for University Square, a 10-acre mixed-use development project at the intersection of Sunset Boulevard and University Avenue in Rocklin, CA. With retail and hospitality components, University Square is the developer’s first project in the city but second in Placer County. The project is slated to be completed by year-end 2025.

University Square is another example of us following through with our approach of developing at dynamic intersections in growing markets we have identified over the years as a developer on the West Coast. We are proud to be a part of Rocklin’s ongoing development and committed to driving growth and progress in the community with this mixed-used development, offering a range of retail and hospitality options for residents and travelers. Akki Patel, CEO of LRE & Companies

University Square will have more than 20,000 square feet of retail space and 5,000 square feet of space for quick service restaurant (QSRs) with drive-thrus; a 123-room Hilton Garden Inn; a 10,000 square-foot daycare center; a 3,700-square-foot convenience store; and a car wash. The site is adjacent to Estia Rocklin, a build-to-rent townhome community with 181 units, and across the street from William Jessup University, a private Christian university with more than 3,000 students.

The project is just east of the 8,497-acre Sunset Area development. The Sunset Area plan is centered around a new California State University, Sacramento and Sierra College campus.

This part of Rocklin is seeing tremendous growth. By prioritizing smart growth and responsible development practices, we can create something special that will stand the test of time. We are honored to be involved in shaping the future of the Rocklin community. Victor Chiang, VP of development at LRE & Companies

Rocklin is home to Quarry Park, the city’s downtown community gathering space, offering rock climbing, paddle boats, and ziplining; more than 380 acres of open space, walking trails, and parks; and two higher education institutions: Sierra College and William Jessup University. The city also has panoramic views of the Sierra Nevada and Sutter-Butte mountain ranges. Rocklin is within a 20-minute drive of Folsom Lake, a 30-minute drive of downtown and Old Sacramento, and less than a two-hour drive from Lake Tahoe, the Pacific Ocean, and San Francisco.

Most of the area’s major employers, including Oracle, UNFI, K-LOVE, and Thunder Valley Casino, are within a two-mile radius of the project.

The project is less than seven miles from another one of LRE & Companies’ commercial development projects. Announced in November 2022, Roseville Junction, a new mixed-use development project in Roseville, CA, will have two select-service hotels, three restaurants, an outdoor gathering space, and an entertainment and sports complex once completed.

About LRE & Companies

The LRE & Co. is a family organization in real estate development, construction, and food and beverage businesses since 1999. It has been present in major markets throughout northern California and northwest Nevada. It is an ever-growing organization consisting of a group of diverse and dynamic people who strive for excellence. LRE & Co. & affiliates’ food and beverage arm comprise franchise restaurants and master development agreements for national franchises. The commercial real estate arm comprises investments in commercial land space and partnerships with major fast casual/QSR brands, Marriott, Hilton & Hyatt groups of hotels. LRE & Co. has a diverse portfolio of office buildings, retail properties, multi-family holdings as well as hospitality. Over the last 15 years, LRE & Co. has leveraged its experience in the real estate space, leading to the inception of the real estate Investment and development arm of the company. Several projects are underway or completed in a very short span due to prior knowledge of the commercial space, including AC by Marriott in Sacramento downtown, Courtyard by Marriott in Woodland, H2 Suites by Hilton & multi-family development in Sacramento.

Concerns Include New COVID-19 Variant, Economy

The past year was mostly positive for the hotel industry, as hotels in many markets achieved record-high rates and revenue per available room near or better than pre-pandemic levels. But staffing woes, supply-chain disruptions and the persistent threat of a recession were also at the forefront of the industry in 2022.

At a time of reflection and anticipation, hoteliers across several positions shared what they are most optimistic and pessimistic about as a new year gets underway.

What Are You Most Optimistic About in the Hotel Industry in 2023?

John Beck, general manager, Crowne Plaza HY36 in New York City: “New York is back. Private businesses are putting money into the New York experience, and when I say that I talk about all these real estate developments — we have Hudson Yards, Manhattan West. Companies are putting money behind the New York experience and doing things that have never been done before.

“Manhattan West has an ice skating rink now, so there’s now a few ice skating rinks in New York City. All the private funds going into the destination is exciting, and it gives more people access to do fun things in New York. It’s not just Rockefeller Center. The things that are planned for next year: festivals on Governors Island, festivals on Roosevelt Island, which hasn’t been done before.

“New York is really an accessible destination, and all the things that typically weren’t happening before the pandemic that are happening make it accessible.”

 

Vickie Callahan, senior vice president of revenue generation, Peachtree Hospitality Management: “I am most optimistic about the continued recovery of occupancy with limited new supply coming into the markets. This means the additional demand will continue to benefit the existing supply in the markets and help further recover occupancy in markets still trailing historical highs.”

Lynette Eastman, general manager, Surfjack Hotel & Swim Club in Honolulu, Hawaii: “The most optimistic thing is we have done a survey. Quinn [the Surfjack’s PR firm] wanted a survey of all their rivals to find out how they found out about the hotel. And the wonderful thing: No. 1 is word of mouth by a landslide for the Surfjack. No. 2 is Google. That’s attributed to Quinn and their marketing abilities to get us out there. And No. 3 is our website. So social media came in further down, but significantly different from the top three, for how they heard about the Surfjack. And so if it’s word of mouth, how awesome is that?

“Even with all this uncertainty, I as a hotelier am very excited about 2023. I’m not expecting a banner year, I’m not expecting it to blow up, but I am expecting it to continue, at least the way we came through in 2022, and not some huge drop.”

Amanda Hawkins-Vogel, executive vice president of operations, Twenty Four Seven Hotels: “Staffing. After a busy 2022, we have the staffing challenges now under control and with more unique solutions in place. We feel confident about being able to offer our guests outstanding service each stay.

“Like all hotel companies, one of the biggest hurdles was staffing our housekeeping departments. More creative ideas such as job sharing — part time, flex time and any time actually — that you can [make] work, we will schedule around the associate.

“We’ve also made sure we have all the tools at hand for our teams heading into the new year. For example, capital investment for new equipment and increasing linen par’s will help with productivity and efficiency, thus making our teams jobs easier.”

Akki Patel, President and CEO, LRE & Companies: “Opportunities! We are well-capitalized, so we are excited about the opportunity to look at more real estate. Also, we hope sellers will be more realistic with their timing expectations and give us enough time to determine whether the deal is feasible.

“During this last bull cycle, it has been a mad dash trying to perform due diligence and run our pro formas in very short timing windows. We are also excited because we will be coming to market with new projects; they should be better-positioned to capture market share since we will be the newer rooms and projects.”

Grey Raines, Managing Partner, Raines Company: “I am excited about our continued growth and what that means for our company and, most importantly, our team members. We are positioning ourselves as a critical player in the Southeast and, in preparation to do so, have introduced new leadership roles, inner-company promotions, and restructuring of roles and responsibilities within our corporate organization.

“These changes will provide further advancement opportunities for our team members while setting the company up for continued success.”

What Are You Most Pessimistic About in the Hotel Industry in 2023?

Beck: “I think as we head into the holiday season, we saw it last year. This time last year, we were sitting really well as an industry and we were poised to have a great December and an amazing [first quarter]. And then we had a variant hit and COVID kind of happened again.

“I think that’s on everybody’s mind. The industry is getting stronger. The biggest thing that can really hurt our industry is … another variant and COVID starting to explode again.

“I’m not an expert, I don’t think we’ll see that, but this month [December 2022] is going to be a record month for our properties. This month is going to be the best month financially we’ve ever done and hopefully nothing affects that.”

Callahan: “I am most pessimistic about the return of corporate demand although optimistic that hotels will see increases in ADR for corporate travel after three years of equal or lower rate performance in corporate travel. It has steadily improved in the last 12 months, however, still have a way to go for midweek occupancy levels to return.”

Hawkins-Vogel: “Continuing concern around the economy and inflation. Adding to that, the uncertainty of the return of the corporate traveler. To this end, we are very mindful of keeping a tight rein on expenses and will be monitoring closely the changing market and economic conditions.”

Patel: “Naturally, we are cautious and more conservative in our forward-looking ADRs and occupancy rate projections. Interest rates might stay up longer than more of the developers are expecting.”

Raines: “The rise in interest rates will continue to be a headwind in 2023 for new development and existing assets. As interest rates climb and debt becomes more difficult to obtain, development will slow down, only allowing exceptional projects to be built, which we view to be positive. Additionally, we may see a wave of distressed pricing that, when positioned correctly, will create greater acquisition opportunities.”

SAN RAFAEL, Calif., Jan. 5, 2023 /PRNewswire/ — LRE & Companies, a full spectrum real estate development, asset manager, construction, and hotel management company, has unveiled plans for Fernley Promenade, a 13-acre mixed-used development project comprising of industrial, retail, and hotel, in Fernley, NV, one of the fastest-growing cities in The Silver State.

“We’ve developed, opened, and operated hundreds of restaurants throughout Northern California and Western Nevada over two decades,” said Akki Patel, CEO of LRE & Companies. “Throughout our journey, we’ve perfected the process of identifying the right pieces of real estate and where future growth will be. Our strategic evaluation identified several prime real estate opportunities in secondary and tertiary markets for mixed-use development projects. Due to its proximity to major highways and strong market fundamentals, Fernley is one of those locations.”

Fernley Promenade will have a 98-room hotel, three quick-service restaurants, three large junior anchors, and 16,000 square feet of shop space. An extended-stay lodging facility, the four-story Home2 Suites at Fernley Promenade will have a swimming pool, fitness center, guest laundry room, breakfast room, and sundries shop. LRE & Companies is in the process of finalizing the project’s national junior anchors. There are already several letters of intent for the restaurant pads. The remaining retail and QSR spaces are available for lease. Fernley Promenade is adjacent to Victory Logistics District, a 4,300-acre master planned industrial center capable of meeting the growing need for manufacturing, distribution, data center, and logistics development in the region. The site is strategically located between a Super Walmart and Lowe’s facing Highway 80. The project is slated to be completed by year-end 2024.

Located at the intersection of Interstate 80, U.S. Route 50 Alternate, and U.S. Route 95 Alternate, Fernley is a 30-minute drive from Reno, NV, about 22 miles north of Lake Tahoe; a 12-minute drive from Tahoe Reno Industrial Center (TRIC), the largest industrial center in the United States and home to more than a hundred companies; and nearly an hour drive to Pyramid Lake, the only habitat in the world for the Cui-ui fish that has been around for more than two million years. In addition to many mom-and-pop restaurants, hotels, and casinos in the city, Fernley has an emerging tech community, including facilities for Tesla, Panasonic, and Apple. The city is also known for being the former home to one of the first Amazon.com fulfillment centers in the world.

Fernley has been in a growth cycle for much of the past decade, with little evidence indicating it will be slowing. Part of the Reno–Sparks metropolitan statistical area, consisting of two counties in Western Nevada, Washoe and Storey, Fernley has a population of nearly 23,000, with a five-mile population projection by 2026 of 25,070. The city has strong market fundamentals, including a growing population, ample affordable housing, a business-friendly state government, and plentiful employment opportunities.

“Fernley Promenade has all the elements of a successful mixed-use development when you look at it on paper,” said Victor Chiang, vice president of development at LRE & Companies. “Being in one of the strongest counties in Northern Nevada, Lyon County, Fernley over the last 10 years has attracted large Class A industrial developers. We expect Fernley Promenade to drive tourism to the community and become a significant demand generator for future investments. The opportunity for investors, retailers, and, most importantly, the community is significant.”

About LRE & Companies

The LRE & Co. is a family organization in real estate development, construction, and food and beverage businesses since 1999. It has been present in major markets throughout northern California and northwest Nevada. It is an ever-growing organization consisting of a group of diverse and dynamic people who strive for excellence. LRE & Co. & affiliates’ food and beverage arm comprise franchise restaurants and master development agreements for national franchises. The commercial real estate arm comprises investments in commercial land space and partnerships with major fast casual/QSR brands, Marriott, Hilton & Hyatt groups of hotels. LRE & Co. has a diverse portfolio of office buildings, retail properties, multi-family holdings as well as hospitality. Over the last 15 years, LRE & Co. has leveraged its experience in the real estate space, leading to the inception of the real estate Investment and development arm of the company. Several projects are underway or completed in a very short span due to prior knowledge of the commercial space, including AC by Marriott in Sacramento downtown, Courtyard by Marriott in Woodland, H2 Suites by Hilton & multi-family development in Sacramento

Media Contact:
Christopher Joseph (CJ) Arlotta
CJ Media Solutions, LLC for LRE & Companies
C: 631-572-3019
351433@email4pr.com

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