Sheraton in Pleasanton, Calif., Changes Hands for $12.3M
- Feb 10, 2010
February 10, 2010
By Allison Landa, News Editor
A partnership of real estate investment firms has purchased the 170-room Sheraton Pleasanton Hotel for $12.3 million.
Pleasanton Lodging LP, a mixture of principals from Sethi Enterprises and Kapoor Enterprises, bought the full-service hotel located next to the Stoneridge Mall and convenient to significant corporate quarters belonging to Safeway, Pepsi, Ericsson, Square-D, Work-Day and General Electric. The hotel offers services including an on-site fitness facility, high-speed internet access, meeting and banquet space, and a restaurant and lounge.
Henry Bose and Mark McDermott of the San Francisco office of PKF Capital represented the seller, a Southern California-based fund manager.
“The offering of the Sheraton Hotel was one of our most active listings, providing the seller with a number of strong candidates,” Bose said in a statement. McDermott added in the same statement that Pleasanton Lodging plans to retain the Sheraton brand and upgrade the property.
The hotel underwent a multi-million dollar renovation in 2006 during its conversion to a Sheraton Hotel from a Wyndham Garden property. It later fell into default and ultimately foreclosure.
According to Real Capital Analytics, the Sheraton Pleasanton is far from the only Bay Area hotel to suffer such a fate. The research firm found that in 2009, the value of delinquent Bay Area hotels totaled $1.1 billion – more than ten times the total the prior year.
For the fourth quarter 2009, Real Capital reports that 93 full-service hotels were sold during the prior 12 months, with 61 limited-service hotels sold during the same time period. The average price per unit was $99,093.