An affiliate of Richmond, Va.-based hotel investor Apple REIT Cos. has added another Orange County property to its portfolio.
The company’s Apple Hospitality REIT Inc. said it recently completed the purchase of a 110-room Hampton Inn in Cypress just off Katella Avenue.
A private investor sold the property, which is next to the offices of Yamaha Motor Corp. U.S.A., for about $20 million, or $180,000 per room.
The 71,000-square-foot hotel opened in 2007.
The buyers noted the Hampton Inn’s proximity “to a variety of national and international corporate headquarters,” as well as being less than seven miles from Disneyland, as reasons for the purchase.
The deal was one of three buys Apple Hospitality REIT simultaneously announced last month, along with deals for an existing property in Burbank and a newly built hotel in Fort Lauderdale, Fla. The transactions totaled about $103 million.
Apple Hospitality REIT owns 174 hotels with more than 22,000 rooms. It calls itself one of the country’s largest owners of “upscale, select service hotels,” which are generally defined as a hotel without a restaurant or banquet facilities.
The REIT, whose market value was recently about $3.4 billion, owns one other Cypress property, a 180-room Courtyard by Marriott about a mile from the Hampton Inn on Katella Avenue.
The latest Cypress purchase adds to a string of local deals for Apple Hospitality REIT’s parent company and its affiliates.
Another real estate investment trust run by Apple REIT Cos. announced a deal earlier this year to buy three recently built properties of Irvine-based R.D. Olson Development for a combined $103 million.
The deal included the purchase of Tustin Pacific Center, a two-hotel project next to the Costa Mesa (55) Freeway, and the Residence Inn by Marriott in San Juan Capistrano. The three hotels total 424 rooms and were among the first hotels to open in Orange County following the last recession.
The sale of the two Tustin hotels was completed in February, and the San Juan Capistrano Residence Inn deal is expected to close soon, according to regulatory filings.
Ranch Tops
The Irvine Company said it continues to have strong sales at its new-home projects in OC, especially compared to other large area developments.
The Newport Beach-based company’s home developments on the Irvine Ranch ranked as the top-selling master-planned community in the Western U.S. and the country’s second bestselling community, according to a midyear sales report by Washington, D.C.-based Robert Charles Lesser Co.
The study showed projects at the Irvine Ranch—including the villages of Orchard Hills, Portola Springs and Stonegate—selling 1,036 homes in the first six months of the year. That’s a 55% increase from year-ago levels, according to the report.
There were 1,431 sales on the Irvine Ranch in all of 2014.
An Irvine Co. press release on the news noted that its projects “were the only new home community in Orange County listed among the top-20 selling communities for the first half of 2015.”
The first phase of Great Park Neighborhoods’ Pavilion Park in Irvine was largely sold out earlier this year, as was Sendero, the first village at Rancho Mission Viejo. Both developments were top-20 projects in the U.S. in 2014 based on sales.
Those two developments are close to opening their second home phases. FivePoint Communities Management Inc. is preparing to launch the 960-home Beacon Park project in Irvine. Esencia, the 2,700-home project of Tony Moiso’s Rancho Mission Viejo LLC, also is nearing the opening of sales.
KBS Purchase
An affiliate of Newport Beach-based KBS Realty Advisors is under contract to buy a big office property in the Philadelphia suburbs.
The company’s KBS REIT III Inc. said it agreed to pay $89.5 million for CrossPoint at Valley Forge, a 272,360-square-foot office property in Wayne, Pa.
The deal works out to a price of nearly $329 per square foot for the office, which was built in 1974 and is about 95% leased.
KBS said in regulatory filings that it was in the process of negotiating the terms of a mortgage loan to fund the deal.
