Three San Diego hotels that fell
into foreclosure earlier this year are now up for sale as part of a
portfolio of eight bank-owned properties located in Southern California, Georgia, New York
and Utah.
The three local hotels -- the Courtyard by Marriott San
Diego and Holiday Inn Express San Diego, both in Old Town, and the
Holiday Inn in downtown San Diego -- account for a little more than 500
rooms out of the nearly 2,000 on the market.
Also being sold are hotels in Manhattan Beach, Atlanta,
Long Island, Salt Lake City and Provo, Utah.
Jones Lang LaSalle Hotels, which is selling six of the
properties on behalf of the lender, Massachusetts Mass Mutual Life
Insurance Co., noted that they can be purchased individually or as a
portfolio.
The properties were returned to the lender after the
owner, Sunstone Hotel Investors Inc., decided last year to default on a
$246 million loan covering nearly a dozen hotels that it concluded were
worth significantly less than the debt owed.
The San Clemente real estate investment trust ultimately
agreed to hold onto three of the 11 hotels in return for an $83 million
payment to Mass Mutual, leaving a loan balance of $163 million.
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Holiday Inn San Diego Downtown
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