According to Robert A. Alter, CEO of Sunstone, the property is "a high-quality asset in a market with robust business and leisure demand generators." The deal was financed with a $70 million five-year loan. Set at a rate of 6.6%, the loan is interest-only and will mature in 2019.
Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group, tells GlobeSt.com that because of increased tourism and an upswing in the business sector, competition for hotel property is stiff. "The asset is a great buy for Sunstone," he says. "La Jolla is a hard market to get into, even at the $100 million price."
Other recent hospitality deals include the sale of the 68-room StayBridge Suites Hotel to Trendwest Resorts Inc. Financial considerations of the sale were not available, but Trendwest says the hotel will be converted into a timeshare property.
The 68-room hotel opened in 2004 and was sold by an affiliate of Shapery Enterprises. Shapery will maintain a presence in the area however, with plans to build a 40-story high rise condominium on what is now the hotel's parking lot. Once complete, the two properties will share parking and amenities.
Neptune Hospitality Advisors arranged the sale of the building, representing one of two deals involving Neptune and Cendant, says Neptune president Michael Armstrong. The real estate investment bank also completed financing for the Hotel Prava for Cendant in 2005. The StayBridge acquisition comes from increased demand for timeshare units, Armstrong notes.
The StayBridge is a 78-year old building, formerly the Riviera Apartments/Hotel. It was renovated and converted to the StayBridge in 2003, keeping its original façade.
Earlier this month, GlobeSt.com reported that Neptune arranged a $25 million rehabbing deal for the Radisson Hotel Harbor in the Marina/Little Italy quarter of San Diego. The hotel stands 23 stories and is comprised of 333 rooms. Neptune also recently arranged $30 million in refinancing for two Hansji hotels in Costa Mesa.
The heated hotel activity is not exclusive to San Diego County, however. The Marriott Ventura Beach, located one mile north of Los Angeles, was sold for $34 million to Integrated Capital. The 286-room hotel was recently renovated and consists of 9,000-sf of meeting space and amenities.
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