Built in 1983, the Oakland City Center Marriot is a 21-story, full-service hotel located at 1001 Broadway adjacent to the Oakland Convention Center and a BART station. Hotel amenities include casual and fine dining options, a fitness center and swimming pool as well as 89,000 sf of meeting space.
Across the street at 988 Broadway is the five-story Courtyard Oakland Downtown, which was completed in 2002 and sits on land leased from the city. Amenities include a swimming pool, hot tub and exercise room. Both properties are steps away from some of the city's most vibrant and attractive neighborhoods including Old Oakland and Chinatown.
"We see considerable room for growth in market capture, rates and occupancy," says CIM Group principal John Given in a prepared statement. "There is a strong commitment to the renaissance of Downtown Oakland and we believe that these two well-located hotels will be an important factor in that initiative."
CIM Group is planning a comprehensive renovation of the older property, in part to retain the property's Marriott branding. The property is expected to generate $40.8 million in cash flow in 2007 and $27.1 million of net cash flow after senior debt is paid, according to public documents. Performance data for the smaller, newer property was not available.
CIM Group is not confirming the sale price of the names of the sellers. According to public records, the selling entities appear to include Oakland Garden Hotel LLC and Oakland Renaissance Associates. The city also has an financial interest in both properties. It is a creditor for the larger property and owns the ground beneath the other.
One of the city's two Downtown redevelopment managers, Patrick Lane, says the transaction was prolonged because CIM has undisclosed partners who have restricted what CIM can say about the deal. As a result, Lane says the city doesn't actually know the exact sale price, though he confirmed that the $66-million figure, which is mentioned in city documents, is "in the ballpark."
"There are third parties involved [and] CIM has a confidentiality agreement; it went much slower because of this," Lane says. "We don't really know what the [sale price is] and we're not very happy about it."
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