Business & Finance

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.”

About SENTRE

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.

About HFF

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.

CONTACTS:
HUNTER COMBS
CA Lic. #01771662
HFF Director
hcombs@hfflp.com
(858) 552-7690

SCOTT HALL
CA. Lic. #01917029
HFF Managing Director
shall@hfflp.com
(858) 552-7690

ALDON COLE
CA Lic. #01457351
HFF Senior Managing Director
acole@hfflp.com
(858) 552-7690

OLIVIA HENNESSEY
HFF PR Coordinator, Marketing
ohennessey@hfflp.com
(713) 852-3500

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Eco-Friendly Practices: The Value of Sustainability
The hotel industry continues to make remarkable progress in implementing sustainability policies and procedures in their properties throughout the world. As a result, they continue to reap the benefits of increased profitability, enhanced guest experiences, and improved community relations. In addition, as industry standards are codified and adopted worldwide, hotels can now compare how their operations measure up against their competitors in terms of sustainable practices and accomplishments. This capacity to publicly compare and contrast is spurring competition and driving innovation as hotels do not wish to be left behind in this area. Water management and conservation is still a primary issue as population growth, urbanization, pollution and wasteful consumption patterns place increasing demands on freshwater supply. Water recycling; installing low-flow fixtures; using digital sensors to control water usage; and even harvesting rainwater are just a few things that some hotels are doing to preserve this precious resource. Waste management is another major concern. Through policies of reduce, reuse and recycle, some hotels are implementing “zero-waste” programs with the goal of substantially reducing their landfill waste which produces carbon dioxide and methane gases. Other hotels have established comprehensive training programs that reinforce the value of sustainability. There is employee engagement through posters and quizzes, and even contests are held to increase innovation, sensitivity and environmental awareness. Some hotels are also monitoring a guest’s energy usage and rewarding those who consumed less energy with gifts and incentives. The May issue of the Hotel Business Review will document how some hotels are integrating eco-friendly practices into their operations and how they and the environment are benefiting from them.