SAN DIEGO Atlas Hospitality Group has sold the lender-owned Mission Plaza Hotel & Suites by SeaWorld in San Diego.
Atlas Senior Vice Presidents Tim L. Edgar and Sachin J. Shah represented both the seller, an affiliate of Miami-based special servicer LNR Partners Inc., and the buyer, an affiliate of Reven Capital and Jet Stream Hotels & Resorts.
The 316-key property was taken through foreclosure in May. Features include an on-site 24-hour restaurant, an outdoor heated swimming pool, a fitness room and more than 2,500 sq. ft. of meeting space.
“This deal is an example of the current investment opportunities that are available today as a result of the worst recession since the Great Depression,” says Reven Capital Chairman and CEO Chad Carpenter. “There are tremendous opportunities now to acquire good real estate in all asset classes with significant upside at a fraction of cost from lenders who have foreclosed. Hotels have been hit very hard by the recession, and most all hotels are worth less than 50% of what they were worth just two years ago.”
Jet Stream Hotels will have an affiliate manage the hotel on behalf of the new ownership and will work on repositioning the asset with a new flag, minor improvements and upgrades to the rooms as needed. The hotel is located close to the beaches, SeaWorld, the San Diego Zoo, Balboa Park, downtown and San Diego International Airport.
“The property has suffered since losing its franchise affiliation and through the foreclosure process, so this is a perfect opportunity to reposition this asset into the mid-market segment,” Edgar says. “It’s also a smart business decision because it’s difficult to operate over 300 guestrooms without a reservation system.”