SAN JOSE, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that CBRE Strategic Partners US Value 6, a fund sponsored by CBRE Global Investors, has acquired the San Jose Marriott Hotel. The 506-guest-room, class A full-service hotel is located in downtown San Jose.
The Marriott is the newest hotel in the submarket and offers contemporary accommodations and amenities, including a swimming pool, fitness room, business center, 23,000 feet of meeting and event space, and acclaimed restaurants. While the fund could not disclose the purchase price, we did learn that it was purchased for “significantly less than replacement cost.”
Located at 301 S. Market St., the 28-floor hotel is directly connected to the San Jose Convention Center, which is currently under renovation and expansion and due to open in the fall.
SCS Advisors, a hotel asset management company and the original developer of the hotel, will serve as the asset manager. The Strategic Partners US team is also planning renovation work to reinforce the hotel's “pre-eminent position as the market leader.”
According to Vance Maddocks, president of CBRE Strategic Partners US, “The Silicon Valley lodging market is fed by strong corporate demand from the significant concentration of high-tech companies in the region.
Maddocks adds that “With strong current cash flow, the San Jose Marriott, in particular, is an attractive business hotel with an added benefit of being directly connected to the now-expanding San Jose convention center.”
Less than five miles from the San Jose International Airport, the property also offers access to the 280 & 87 freeways, the VTA Light Rail System, and CalTrain.
In other San Jose Marriott news, as GlobeSt.com recently reported, an affiliate of Huntington Hotel Group will break ground near San Jose Airport next month on two new Marriott-branded hotels that will operate within a single building at 10 Skyport Drive at the intersection of North First Street in San Jose. Huntington Hotel Group along with affiliate San Jose HHG Hotel Development LP will develop a 175-room Residence Inn and a 146-room SpringHill Suites 0.5 miles east of the San Jose International Airport. Barry Swenson Builder has been selected for the construction project. The group has purchased 3.21 acres of land for the project. The extended-stay and select-service Residence Inn by Marriott and the SpringHill Suites by Marriott will be enclosed in one seven-story building with guestrooms on levels two through seven. The hotels will share a pool, health club, gift shop, three-story parking garage as well as back-of-house areas.
Pertaining to that deal, but more of the local hotel market in general, Kevin Keefer, principal of Huntington Hotel Group, previously said that there is a need for “additional extended stay lodging in the area due to the success of Silicon Valley technology companies and new/expanding companies driving employment growth.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
