HFF Closes Hotel-to-Residential Repositioning in San Diego
SAN DIEGO, CA January 12, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and financing for the acquisition and repositioning of the Sommerset Suites Hotel into an 80-unit boutique apartment community named The Whitson in San Diego’s Hillcrest neighborhood.
SENTRE purchased the hotel free and clear of existing debt. Working on behalf of the new owner, HFF placed the five-year, fixed-rate loan with a life insurance company. Loan proceeds will be used to purchase the hotel and fund the repositioning.
The property was originally designed in the late 1980s as a boutique apartment community. The sellers converted the property into a hotel in the mid-90s, leaving most of the apartment amenities intact, including a heated pool and spa, barbeque area, dining room and business center with units containing full kitchens, private balconies and efficient floor plans. The Whitson will feature studio and one-bedroom units with 96 parking spaces, 80 of which are covered. Located at 606 Washington Street, the property is in the heart of Hillcrest, one of San Diego’s live-work-play areas. The Whitson is within walking distance to restaurants, shopping, art galleries, nightlife and Balboa Park. Additionally, the property is up the hill from downtown San Diego and near a health care employment cluster anchored by Scripps Mercy Hospital and UC San Diego Medical Center.
The HFF investment sales team was led by director Hunter Combs and managing director Scott Hall.
The HFF debt placement team was led by senior managing director Aldon Cole.
“This was an exciting transaction with complex obstacles along the way, but SENTRE saw the rare opportunity to acquire one of the largest apartment communities in one of the top rental submarkets in San Diego,” Combs said. “The Whitson will be an excellent addition to the Hillcrest community, and will undoubtedly compete directly with many of its new construction counterparts.”
Founded in 1989, SENTRE is a real estate investment and services firm which represents a broad range of interests, from large institutions to individual investors. The name SENTRE (pronounced “sentry”) is an acronym for Stewards and ENTrepreneurs of Real Estate, and reflects a common vision of providing superlative service to investors, owners and tenants while remaining at the cutting edge of business and technology. For more information, visit http://www.sentre.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.
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