Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 21 July 2005

Sunstone Pays $72Mln for Newport Beach, Calif., Hotel

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Sunstone Hotel Investors Inc. has completed the $72 million purchase of the Sutton Place Hotel, a 444-room property in Newport Beach, Calif.

Sunstone, a San Clemente, Calif., hotel REIT, purchased the property from Tarsadia Hotels, a Newport Beach hotel company.

It said it would put the 20-year-old property through a $22 million renovation and would rename it the Fairmont Newport Beach when the renovation is done, which should take place early next year.

The company has hired Fairmont Hotels and Resorts as manager under an agreement for an initial 10 years that can be extended for another 20 years. It would pay Fairmont a base management fee of 3 percent of total revenue plus an incentive fee. That incentive could amount to as much as 25 percent of any increase in cash flow, but not more than 4 percent of the property's total revenue for any year.

For the three months ended in March, the property generated $891,000 in net operating income, according to a regulatory filing.

The Sutton Place hotel sits on land that is leased from a group including Lee Sammis Associates of Costa Mesa, Calif.

When the property opened in 1985, it was part of LeMeridien Hotel Group. It was sold in 1994 to Sutton Place Grande Hotels, which was led by Stanley Ho of Hong Kong. The group sold it to Tarsadia last year.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Los Angeles
  • States: California
  • Sector: Hotel & Resort
  • Subject: Property Acquisitions (ACQ)
  • Company: Taconic Investment Partners
  • Valuation: Between $50 million and $100 million
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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