On November 1, 2013 LoganView Capital LLC and its Investor Partners Acquired the leasehold 165 Room Carmel Mission Inn, in Carmel, CA for $20,250,000 and plan to spend $1,500,000 for capital improvements in the first year of operations.
The transaction was capitalized via a $14,500,000 first deed of trust underwritten by the Los Angeles office of Deutsche Bank and equity funded by LoganView Capital and its Investor Partners. Waterford Hotels & Inns out of San Mateo, CA will manage the Hotel.
Deal highlights:
* The purchase price of $122,727 per room represents an approximately 9% capitalization rate
* The purchase price represents a material discount to replacement cost
* Extreme “high barriers to entry” market due to regulatory and water rights restrictions and therefore the probability of material new supply is limited
* Advancing leisure demand patterns from both foreign and domestic travelers
* Internationally renowned area with multiple attractions and demand generators for leisure, group, and business travelers
* Strong projected market RevPar growth over the next 2 – 3 years
The Carmel Mission Inn (www.carmelmissioninn.com) represents a high quality mid-market boutique hotel centrally located with respect to area attractions.
The “home-base” Hotel is located just outside the village of Carmel-By-The-Sea and is an ideal hub for travelers seeking easy access to the Carmel Wine Country, world-class golf amenities, ocean beaches, Big Sur site seeing, Laguna Seca Race Track, and Monterey attractions. With 165 rooms, the Fuse Lounge Café, and 4,670 square feet of meeting space, the Carmel Mission Inn is the largest hotel in Carmel.
The Hotel is situated at the corner of Pacific Coast Highway and Rio Road between the Barnyard Shopping Village and Crossroads Shopping Center, both of which offer guests a number of high quality shopping and dining amenities.
The purchase of Carmel Mission Inn is consistent with the investment strategies of LoganView Capital, which include acquiring unique lodging assets in secondary markets with high barrier to entry characteristics.
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