Woodbine Legacy Investments Pays $152M for LA DoubleTree Hotel
- Oct 16, 2018
Woodbine Legacy Investments—a private real estate fund created and managed by Woodbine Development Corp.—has purchased DoubleTree by Hilton Hotel Los Angeles – Westside, in Culver City, Calif., from The Carlyle Group. The $151.5 million price tag also included an adjacent 2.2-acre development parcel that’s entitled for 300,000 square feet of office space. Interbank provided the acquisition financing. Eastdil Secured brokered the transaction.
The 375-key property is located at 6161 W. Centinela Ave., close to Manhattan Beach, Marina Del Rey, the Santa Monica beaches, Los Angeles International Airport and the new Los Angeles Stadium and Entertainment District. The area, commonly referred to as Silicon Beach, has recently seen an influx of technology companies and startups, among them Facebook, Apple and Google.
Woodbine reportedly plans to undertake a $35 million renovation of the hotel, to begin in early 2019, and to eventually reflag it. The development of the adjacent 2.2-acre parcel is anticipated to start later next year.
The renovation will include all public spaces, the facade and landscaping, and 25,000 square feet of meeting space to reflect the surrounding fast-growing, tech-oriented neighborhood. In addition, all guestrooms and guest baths will be outfitted with new furnishings, surfaces, lighting and décor. Amenities, such as the fitness center, pool, Share Bistro and Share Wine Lounge, will also be upgraded.
A long pursuit
The DoubleTree LA – Westside first caught Woodbine’s eye when the company opened its Los Angeles office in 2011. At that time, according to a prepared statement, the hotel was “an unremarkable airport hotel,” though it had an exceptional location.
Over the years, Dupree Scovell, Woodbine’s and WLI’s LA-based managing partner & chief investment officer, kept an eye on the hotel, watching for redevelopment to enhance the areas around it.
Woodbine tried to purchase the property in 2016, but due diligence around entitlements reportedly took the deal off the table. But another opportunity arose earlier this year, and this time Woodbine was successful. “This is a case where it paid to be patient,” Scovell said.
A few too many deliveries
Taken as a whole, the Los Angeles County hotel market has seen strong growth over the last several years and in fact hit a record 48.5 million visitors in 2017, according to HVS. Average occupancy reached 80 percent in 2017, down about 1 percent from the prior year, mostly because of new supply, a trend that has continued in 2018. Market-wide, the ADR was roughly $176 in 2017, or about $5 higher than the prior year, resulting in peak RevPAR of roughly $141.
In May, the DoubleTree by Hilton Hotel in LA’s Marina del Rey submarket, dubbed the Hotel MdR, was purchased by London & Regional Properties, of London. The 283-key property was L&R’s first purchase in the United States.
Image courtesy of Woodbine Legacy Investments