Wheelock Street Capital Announces Acquisition of Two Premium Limited Service Hotels in San Diego, California
Wheelock Street Capital announced it has acquired two premium limited service assets in San Diego's Gaslamp Quarter, the Courtyard by Marriott San Diego Gaslamp located at 453 Sixth Ave., and the Moxy San Diego Downtown/Gaslamp Quarter, located at 831 Sixth Ave. from San Diego based J Street.
Purpose built and well located in San Diego's Gaslamp Quarter, the 90-room Courtyard and 126-room Moxy are a short walk from the San Diego Convention Center, Petco Park, and over 3 million square feet of commercial development in planning or currently under construction Downtown. The Courtyard features a popular rooftop bar and event space, the Nolen, which offers panoramic views of the San Diego skyline.
In addition to a longstanding reputation as a vibrant urban center known for its activities and tourism, San Diego has experienced appreciable residential and commercial growth over the last several years, solidifying the city's place as a national hub for the life science industry and a major West Coast convention destination. On the heels of strong leisure-driven lodging demand during the second half of 2021, convention activity resumed in early 2022, and a robust forward-looking calendar of events supports Wheelock's positive outlook on the market.
Island Hospitality, one of the leading hospitality managers in the U.S. with an existing portfolio of over 75 hotels and a significant existing presence in California will assue management responsibilities under Wheelock's ownership.
The acquisition marks Wheelock's return to the San Diego hospitality market, having previously owned the Courtyard San Diego Downtown, Marriott Mission Valley and Hilton Del Mar. "The properties are an excellent fit for our current acquisition criteria given their institutional quality, A+ locations within the Gaslamp Quarter, and strong positioning within a market exhibiting a rapid recovery fueled by multiple demand generators," stated Chris Mejia, Principal at Wheelock Street Capital. "The market and properties continue to outperform our expectations and we look forward to working together with Island Hospitality to further enhance the properties' positioning as first choices among convention, business, and leisure travelers visiting San Diego."
CBRE Group, Inc. ("CBRE") arranged the sale of both hotels.
About Wheelock Street Capital:
Wheelock Street Capital was formed in 2008 by Rick Kleeman and Jonathan Paul, two veteran real estate private equity investors, each with over 30 years of broad real estate transaction experience across all major asset classes. Wheelock has raised over $5 billion in capital commitments from well-known institutional investors and focuses on real estate investment opportunities throughout the United States, in both public and private markets. Wheelock is currently deploying its seventh fund in its value-added series, Wheelock Street Real Estate Fund VII and its first perpetual life fund, Wheelock Street Long Term Value Fund. The Firm may invest directly or with high quality joint venture partners through a variety of capital structures and transaction types, including acquisitions, restructurings, and recapitalizations. Wheelock's investment team benefits from extensive experience from top-tier institutional investment firms and highly regarded real estate operating companies and has produced a 14-year track record of demonstrated and consistent outperformance over industry benchmarks.
About Island Hospitality Management
Headquartered in West Palm Beach, Florida, Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia.