EVP John Strauss of Jones Lang LaSalle, which brokered the deal, declined to discuss the price of the hotel, which sits on a bluff overlooking the Pacific Ocean. But Strauss tells GlobeSt.com that the Laguna Cliffs generated intense competition among prospective buyers and that the new owner, an institutional client of Cornerstone Real Estate Advisers, plans to invest considerably in upgrading and renovating the property.
Besides its 376 guest rooms with ocean views, the property features 50,000 sf of function space, a 14,000-sf spa, a 2,500-sf fitness center, two heated outdoor pools and a lighted tennis court. The hotel was renovated only five or six years ago, but Strauss tells GlobeSt.com that the new owner sees the potential to be even more competitive in the South Orange County coastal market via further improvements.
Market sources indicate that Cornerstone acquired the property from Prudential Real Estate Investors, which bought it for $82.4 million in September of 2004. The dramatic price increase in only three years underscores how rare and how much in demand coastal hotels are in Southern California, where lack of land and stringent development regulations all but prohibit the building of new properties.
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