News for the Hospitality Executive
SAN DIEGO, CALIFORNIA – January 10, 2011 – The Investment Banking Group of CapStone Investments has announced that it has advised and arranged the recapitalization of the Hotel La Jolla, located in La Jolla, California. CapStone Investments represented the owner, La Jolla Shores Hotel Ventures, LLC. Hotel La Jolla is an 11-story, 108 room boutique hotel located within walking distance of La Jolla Shores beach.
CapStone Investments secured an institutional investor who purchased both the senior mortgage and the mezzanine debt and invested additional equity capital that will be used to complete an on-going renovation of the hotel. As part of the recapitalization, the existing owner has also invested additional equity. The recent renovation involved replacement of virtually all building infrastructure, as well as a complete redesign of all rooms and public spaces. Once the renovation is completed in early spring, Hotel La Jolla will be one of the premier properties in La Jolla. The hotel will continue under present management.
“This transaction represents what we believe will be a dominant theme in hospitality finance in 2011. Existing ownership, in joint venture with fresh capital, will be able to work with in-place lenders to achieve solutions that allow hotels to emerge from an over-leveraged situation and prosper in a recovering industry,” commented Bill Littlefield, Senior Vice President – Real Estate of CapStone Investments.
"Opportunities such as was presented by Hotel La Jolla are very much in demand by the various investment funds and private investors with whom CapStone Investments has active relationships. CapStone is very pleased that we were able to match this opportunity with the right investor" commented Nicholas Killebrew, Vice President – Investment Banking of CapStone Investments.
CapStone Investments (www.capstoneinvestments.com) is a specialized investment banking group providing comprehensive investment banking services with respect to private placements, equity and equity-linked financing and senior and mezzanine debt. CapStone Investments is based in San Diego, California, and is a member of FINRA/SIPC.
For more information contact Bill Littlefield at 858-875-4503.
William C. Littlefield
Senior Vice President - Real Estate
12760 High Bluff Drive, Suite 120
San Diego, California 92130
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