Irvine-based R.D. Olson Development is expected to sell a hotel it recently completed in North San Diego County.
A unit of Apple REIT Cos., a company in Richmond, Va., that sponsors a series of non-traded real estate investment trusts, said earlier this month it is under contract to buy a Courtyard by Marriott hotel in Oceanside, which opened Nov. 9. The purchase price is $30.5 million, or roughly $215,000 per room, for the 142-room hotel, according to regulatory filings.
The Courtyard by Marriott is at 3501 Seagate Way, about 3 miles from the ocean. The hotel is part of the Ocean Ranch development, a cluster of offices and other buildings located alongside Oceanside Boulevard. The development, which includes about 2,000 square feet of meeting space, was said to cost about $25 million at the time construction began, according to the builder.
The 79,000-square-foot hotel was built by R.D. Olson Construction, a unit of the hotel developer, and was completed three weeks ahead of schedule.
The Courtyard by Marriott is the second hotel that R.D. Olson Development has built in San Diego County. The first, a 125-room Residence Inn by Marriott built in 2007, was sold a year later to another affiliate of Apple REIT Cos., along with a 166-room Marriott Residence Inn it built in Burbank. Those two hotels traded hands for a combined $80 million.
R.D. Olson Development plans to break ground on a Courtyard by Marriott in the Santa Barbara County city of Goleta this month. That project’s slated to cost about $28 million.
It’s also wrapping up work on a $16.5 million Courtyard by Marriott Maui, the Hawaiian island’s first Kahului airport hotel.
RiverRock Win
Newport Beach-based commercial real estate management and leasing firm RiverRock Real Estate Group has landed one of its largest assignments to date.
The company said it was selected by Santa Ana-based Red Mountain Retail Group Inc. to provide property management for its retail portfolio, which totals a little more than 3 million square feet. The new assignment spans neighborhood and regional shopping centers in California and Arizona and boosts RiverRock’s property management portfolio to nearly 20 million square feet.
Red Mountain said this summer that its total portfolio has a market value of about $700 million. It recently refinanced a large portion of its holdings.
The retail investor and developer owns about 10 Orange County properties, the largest a 115,000-square-foot center in Fountain Valley near Harbor Boulevard and Edinger Avenue.
The company had been using Santa Ana-based Grubb & Ellis Co. as its primary property management company since early 2009.
RiverRock’s Stacey Monroe will serve as portfolio manager for the Red Mountain account. She will be based out of RiverRock’s Newport Beach headquarters, and will manage on-the-ground teams in Newport Beach, Sacramento and Phoenix, according to the company.
Laguna Sale
A retail center near Laguna Beach’s arts district is up for sale.
The Laguna Beach Festival Center building, a 19,780-square-foot property fronting Laguna Canyon Road, was recently put up for sale by a local private investor.
The sale price for the center, located at 805-859 Laguna Canyon Road, is $10.7 million or about $541 per square foot, according to brokers with Marcus & Millichap Real Estate Investment Services who have the listing for the property.
The center, near the Sawdust Art Festival and Pageant of the Masters site, is less than half full, and counts monthly rents as high as $4 per square foot, according to CoStar Group Inc. data.
The Laguna Culinary Arts cooking school occupies about a quarter of the center and is its largest tenant.
Paul Bitonti, a vice president in Marcus & Millichap’s Newport Beach office, is representing the seller.
Miami Deals
Miami Worldcenter, a 20-acre development proposed for downtown Miami that counts Newport Beach-based Centurion Partners LLC as a part-owner, has a new investment partner from Southern California.
Los Angeles-based CIM Group, one of the country’s more active real estate investors, this month announced it had purchased an equity stake in the Worldcenter project, a nine-square-block, mixed-use development just north of Miami’s main business district.
Terms of the investment weren’t disclosed.
Centurion, a developer of high-end condos, resorts and hotels, has been working on getting the project moving ahead for several years, amid the real estate downturn, along with Boca Raton-based Falcone Group.
The project envisions more than 10 million square feet of office and hotel towers, condos, shops and entertainment, developed in multi-year phases.
Gambling is also a possibility for the site, if the state gives the OK. Casino developer Steve Wynn and other Las Vegas players reportedly have taken interest in the Miami project of late.
