Rockbridge Capital Announces $26,300,000 First Mortage and Mezzanine Investment to Acquire and Renov

. October 14, 2008

COLUMBUS, OH, July 25, 2005. Columbus, Ohio-based RockBridge Capital, LLC has announced the closing of a $26,300,000 first mortgage and mezzanine investment, representing 97.5% of the total capitalization, to acquire and renovate the 204-room Hilton Hotel in Monterey, California. James T. Merkel, Managing Director of RockBridge, made the announcement.

The sponsor is Ocean Park Hotels ("OPH"), a Valencia, California-based lodging company with a strong West Coast presence and extensive ties to Monterey, factors that helped put the transaction together. At the time of acquisition, the Hilton was underperforming and in need of capital investment. By Spring 2006, the Hilton will have completed a $5,200,000 renovation to its exterior, public areas, and guestrooms, which will include enlargement of guest bathrooms, a new FF&E package, wireless Internet access, and upgraded on-demand HVAC. The all-in, as-renovated cost of approximately $132,000 per key is an attractive basis for a newly renovated, irreplaceable asset in Monterey. Additionally, the investment in the Hilton is expected to provide above-market returns as a result of OPH's management expertise and the positive renovation impact.

OPH owns and manages 11 properties in California and Arizona, with 7 more under development. OPH has been active in developing and owning principally Hilton- and Marriott-branded properties, and acquiring and repositioning high-quality, strategically-located hotels in strong markets. As a result of their strong existing relationship, and leveraging the strengths of each organization, OPH and RockBridge executed on a complicated acquisition in approximately 30 days. RockBridge and OPH have a strong and growing relationship, as the two have partnered on five transactions in the past year, representing nearly $70,000,000 in capitalization.

Commenting on the transaction, Merkel indicated, "This transaction represented a great opportunity to leverage the partnership formed by RockBridge and OPH." Merkel continued, "The trust demonstrated between RockBridge and OPH made it possible to execute on a very complicated transaction in a short amount of time."

Based in Columbus, Ohio, RockBridge provides capital to the real estate industry through the RockBridge Real Estate Funds. Since 1993, the principals of RockBridge have formed and managed six (6) closed-end real estate funds with both institutional and high net worth investors. RockBridge originates bridge, first mortgage loans, mezzanine loans, and preferred equity investments, primarily in the hotel sector. Since 1993, the RockBridge team has invested over $550 million in more than 250 assets nationwide, with aggregate transaction capitalization exceeding $3.5 billion.

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