Property
- A 503 room, institutional quality CBD business hotel with 25,000 sf of retail space and a 635 unit parking structure located steps away from the California State Capitol Building in Sacramento, California
Advantages
- Property was underutilized and undervalued, no fundamental property issues
- Institutional CBD quality asset in an irreplaceable location and which dominated the Sacramento hospitality market
- Located next to the State Capitol
- Initial current cash flow was stable, providing good downside protection
- Substantial upside opportunity to increase revenues and bottom line and acquire when the hotel sector was out of favor with investors
Results
- Significantly improved operating performance
- Enhanced returns with leverage and creative structuring
- Refinanced twice, at successive lower borrowing rates and increasing amounts
- Excellent current cash return at the time of the sale
- Successfully sold interest to Co-Managing Member