Atlas in the news

Signia Hilton plans new restaurant, lounge, other other amenities at downtown San Jose hotel By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News GroupPUBLISHED: November 20, 2023 at 11:20 a.m. | UPDATED: November 20, 2023 at 1:34 p.m. SAN JOSE — A landmark downtown San Jose hotel is poisedto benefit from the sale of one of its two towers for San Jose State Universitystudent housing — and a new restaurant, lounge and other amenities are also inthe works after the $73.1 million deal. The Signia by Hilton San Jose, now a 541-room hotel, is eyeing significantupgrades in the wake of a deal whereby the Throckmorton real estate firm boughtthe hotel’s former southern tower as a crucial step to transform the high-riseinto housing for SJSU students. SJSU will lease the southern tower fromThrockmorton. Mill Valley-based Throckmorton Partners, acting through an affiliate, paid$73.1million to buy the southern tower of the Signia by Hilton San Jose,documents filed on Nov. 17 at the Santa Clara County Recorder’s Office show.Throckmorton bought the southern tower through an all-cash deal. The hotel, which was formerly the Fairmont and is now owned by a group headedup by Bay Area business executive Sam Hirbod, has a greatly improved occupancylevel…

By Nellie Day | Nov 20, 2023 8:00am There are many who would argue that San Francisco’s facing an image problem. Alan X. Reay, president of Newport Beach, Calif.-based Atlas Hospitality Group, which specializes in the sale of California hotels, would be one of them. “The city has to completely change the perception of the rampant crime and homelessness,” he says. “It has been covered extensively in the press and on TV, and is a huge negative for tourism and, more so, for anyone planning a convention or meeting.” Some might argue it’s a huge negative for current and would-be hotel investors as well. Trepp released a report in August that analyzed how San Francisco’s crime has impacted the city’s businesses and commercial real estate, hospitality included. The report notes that 90 percent of the city’s property crimes take place in Union Square, South of Market (SoMa), Fisherman’s Wharf and Japantown, in that order. “Out of all the identified high-crime locations, more than 65.1 percent experienced stagnating business growth or even losses,” the report states. “This finding indicates that the majority of locations with declining businesses are surrounded by high-crime areas, emphasizing the detrimental effects of persistent crime on business vitality.” The…

By: BRYNN SHAFFER | OCTOBER 23, 2023 It’s been six months since Measure ULA went into effect, and one thing is certain: sales volumes are dramatically down. In addition, many developers are looking to do more work outside of Los Angeles because of it.  Enacted on April 1, Measure ULA, which stands for United to House L.A., is a tax on all real estate sold at or above $5 million in the city of Los Angeles, which includes most of the San Fernando Valley. The tax received 58% voter support to pay for new homeless support, requiring sellers of properties valued at $5 million to $10 million to pay a 4% tax to the city and sellers of properties at or above $10 million to pay 5.5%. “A lot of owners who would be potential sellers aren’t selling,” Greg Geraci, an executive vice president at Colliers and a Valley industrial specialist, said. Proponents of ULA dubbed it the “mansion tax,” arguing that it would essentially take from the rich and give to the poor, but the tax is much more complex than that and affects all types of real estate. Its passage has tanked sales across all asset types, with commercial properties such…

BY BRYNN SHAFFER | OCTOBER 16, 2023 It’s been six months since Measure ULA went into effect, and one thing is already certain: sales volume is dramatically down, and many local developers are looking to do more work outside of Los Angeles because of the measure.  Enacted on April 1, Measure ULA, which stands for United to House L.A., is a tax on all real estate sold at or above $5 million in the city of Los Angeles. The tax received 58% of voter support to pay for new homeless support, requiring sellers of properties valued at $5 million to $10 million to pay a 4% tax to the city and sellers of properties at or above $10 million to pay 5.5%. “I think ULA was a real mistake and is materially impacting the ability of people to build new housing,” said Sean Burton, chief executive of Cityview, a multifamily investment management and development firm based in Century City. Proponents of ULA dubbed it the “mansion tax,” arguing that it would essentially take from the rich and give to the poor, but the tax is much more complex than that and affects all types of real estate. It has impacted sales across…

Bay Area hotel sales have tumbled into a slump By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: October 3, 2023 at 9:25 a.m. | UPDATED: October 4, 2023 at 6:59 a.m. SAN JOSE — A hotel along a light rail line in San Jose has landed local buyers, a reminder that some hotel sales are happening even in the face of a feeble Bay Area lodging market. Caravelle Inn & Suites, a hotel at 1310 North First Street, was purchased for $3.8 million, according to documents filed on Sept. 2 with the Santa Clara County Recorder’s Office. The 50-room, two-story hotel is near the interchange of Interstate 880 and North First Street. The San Jose-based ownership group, which operates as District Eleven LLC, bought the property through an all-cash deal, the county records show. This transaction marks one of the few hotel purchases in the Bay Area so far in 2023 — and one of the very few in Santa Clara County. During the first six months of 2023, only eight hotels were bought in the Bay Area, including two in Santa Clara County, according to a survey by Atlas Hospitality Group, which tracks the lodging market in California.Of the two hotels that were…

Hotel shows upswing in guests after $60 million revamp By GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group PUBLISHED: September 28, 2023 at 5:30 a.m. | UPDATED: September 28, 2023 at 1:59 p.m. SAN JOSE — A big hotel in San Jose has received financial boosts from its lender this year, hopeful indicators that the lodging facility has begun to recover from coronavirus-linked economic woes. The Signia by Hilton San Jose hotel in downtown San Jose during 2023 has landed two increases in the principal amount of its real estate loan, documents on file at the Santa Clara County Recorder’s Office show. The financing boosts that the lender, an affiliate of Brightspire Capital, provided to the Signia by Hilton offer strong signals that the financier is confident in the prospects for the hotel at 170 South Market Street, in the view of Sam Hirbod, principal owner of the hotel property. “Our lender recognized the great amount of equity that we have and continue to build in the Signia,” Hirbod said in an interview with this news organization. “This is why they increased the loan sizes a couple of times.” The upswing in the loan amount for the hotel offers a hopeful counterpoint to the financial struggles…

By Alicia Hoisington Sep 19, 2023 02:07pm San Francisco offers a diverse set of demand generators, such as popular tourist attractions like the Golden Gate Bridge, Fisherman’s Wharf and more. But the market has been slow to recover to pre-pandemic performance levels. That, paired with other financial factors, makes the outlook for the city’s hotel market a bit of a mixed bag. On the investment and development side for San Francisco’s hotel industry, like many markets across the United States, the top story is the banking industry’s recent upheaval. Where interest rate hikes used to be the biggest worry for investors, now the added trouble of banks pulling away from commercial real estate assets—such as hotels and office buildings—is a major concern. But the good news for hoteliers in San Francisco? Because San Francisco is a market with high barriers to entry, owners have not been as motivated to sell their assets. “It’s why we’re not seeing a lot of product in San Francisco trading. People are still bullish on the city in the long term,” said Alan Reay, president of Atlas Hospitality Group. “The bottom line is [that] if you’re a hotel owner and don’t have a loan coming due…

By Alicia HoisingtonSep 19, 2023 02:07pm San Francisco offers a diverse set of demand generators, such as popular tourist attractions like the Golden Gate Bridge, Fisherman’s Wharf and more. But the market has been slow to recover to pre-pandemic performance levels. That, paired with other financial factors, makes the outlook for the city’s hotel market a bit of a mixed bag. On the investment and development side for San Francisco’s hotel industry, like many markets across the United States, the top story is the banking industry’s recent upheaval. Where interest rate hikes used to be the biggest worry for investors, now the added trouble of banks pulling away from commercial real estate assets—such as hotels and office buildings—is a major concern. But the good news for hoteliers in San Francisco? Because San Francisco is a market with high barriers to entry, owners have not been as motivated to sell their assets. “It’s why we’re not seeing a lot of product in San Francisco trading. People are still bullish on the city in the long term,” said Alan Reay, president of Atlas Hospitality Group. “The bottom line is [that] if you’re a hotel owner and don’t have a loan coming due in…

Schrader Boulevard site has entitlements 203-key hotel SEP 13, 2023, 4:34 PM By Isabella Farr Relevant Group is looking for a joint venture partner in a fully entitled hotel site in Hollywood, The Real Deal has learned.  Relevant has hired Cushman & Wakefield to market the Schrader hotel project to potential investors, according to marketing materials for the site and a LoopNet listing. Relevant, run by Grant King, is also willing to sell the property.  The site, located at 1600 Schrader Boulevard, is fully entitled for 203 hotel rooms, marketing materials show. King declined to comment.  “There’s a ton of flexibility,” Cushman & Wakefield broker Mike Condon said, adding Relevant was open to different deal structures. “Every option is on the table right now.” The property sits on the same block as the Tommie and Thompson hotels — two properties Relevant lost to foreclosure earlier this year, after defaulting on mezzanine debt tied to the developments.  Relevant bought the Schrader site for $20 million in 2019, records show, a year after the previous owner, Koar Institutional Advisors, had scored city planning approval for a hotel project.  The limited liability company that owns the hotel site, Schrader Venture, is also linked to Missouri-based CRA…

Home Away From Home BY GINA HALL | SEPTEMBER 11, 2023 Increased construction costs and high interest rates are taking a toll on hotel construction in Los Angeles and the rest of the state.  Los Angeles County still leads California in building new lodging, with 21 hotels and 2,329 rooms under construction the first half of the year, according to a mid-year report from Irvine-based Atlas Hospitality Group.  However, the number of rooms under construction in the county is down by 42% compared to last year at the same time. The number of hotels under construction is down 28% compared to the same time last year, according to the Atlas Hospitality report.  “Smaller projects with fewer rooms are what are in the pipeline to open within the next year,” said Robert Feist, vice president of Atlas Hospitality. “It’s clearly market driven as far as financing, interest rates and cost to build.” Feist noted that pre-pandemic, the number of projects and rooms under construction were almost double the current rate during the stronger market in 2018 and into 2019, when there was more available financing and reasonable construction costs. Then Covid-19 slowed or stopped most hotel construction in 2020.  “All of those projects…

Jennifer Huffman | Sep 6, 2023 Updated 8 hrs ago The 90-room Cambria Hotel Napa Valley, which opened in 2021 after three years of construction, has been officially lost to foreclosure. The Cambria’s developer, Stratus Development of Irvine, no longer owns the Soscol Avenue property. That foreclosure also includes a Cambria hotel in Rohnert Park, in Sonoma County. Both Cambria hotels now belong to the lenders who financed the project. Listed as MRC Ca Lender V, the limited-liability corporation is an affiliate of Madison Realty Capital. A total of $80 million was owed to lenders. However, according to the company that hosted the foreclosure sale on Aug. 25, the properties were “sold” back to the lenders for a total of $59 million. However, the financial foreclosure doesn’t mean Cambria’s doors are closed to Napa Valley and wine country overnight guests. Cambria Hotel area general manager Michael Palmer, formerly the GM of the Meritage Resort and Spa in south Napa, said that the Cambria Hotel Napa Valley is open for business “and continues to operate as usual with no interruption to guest service.” Guests may confirm their reservations via their original booking method, he noted. However, “the hotel team looks forward to hosting incoming guests…

JEFF QUACKENBUSH – THE NORTH BAY BUSINESS JOURNAL August 31, 2023, 4:43PM – Updated 31 minutes ago Two Wine Country hotels with 222 rooms altogether are now under the ownership of the lender after there were no takers in recent foreclosure auctions to cover over $80 million in outstanding debt on both relatively new facilities. After multiple postponements, the 90-room Cambria Napa Valley hotel at 320 Soscol Ave. in Napa came to auction outside the Napa County courthouse on Aug. 25 with an opening bid of $40 million. The 132-room Cambria Sonoma Wine Country hotel at 5870 Labath Ave. in Rohnert Park came up for bid at $19 million earlier that day. Both went back to the lender, an affiliate of New York-based Madison Realty Capital. The private-equity firm had refinanced a construction loan on both properties in April of last year, providing $72 million to affiliates of Stratus Development Partners, the Southern California-based developer and owner at the time. The new loan went into default at the end of March this year, with an outstanding balance at that time of $1.7 million, according to public records. The first trustee’s sale dates for recovery of $80.7 million outstanding on the…