Ellis Partners has sold the DoubleTree by Hilton Hotel Campbell–Pruneyard Plaza, a 169-key property in downtown Campbell, Calif. Somera Capital Management and Tyler Development Corp. purchased the hotel for $59.1 million in March, according to public documents.
The price amounts to nearly $350,000 per key for the Silicon Valley hospitality asset that forms part of The Pruneyard, a 27-acre mixed-use complex featuring three office towers and an open-air shopping mall. The buyers formed a joint venture, with Los Angeles-based Tyler Development Corp. taking a 28 percent stake in the hotel.
Real estate investment banking firm Sonnenblick-Eichner Co. announced that it has arranged a $36.3 million loan for the hotel acquisition. The 12-year financing also provides funds for a $5.8 million upgrade of the Hilton-brand hotel located at 1995 S. Bascom Ave.
The upgrades continue
Ellis Partners and Fortress Investment Group invested $267.4 million to buy The Pruneyard in 2014, according to The Registry. In early 2017, Ellis Partners, a San Francisco-based development firm, undertook a major 14-month renovation of the property’s 260,000 square feet of retail and restaurant space.
Those efforts kicked off after the hotel went through an upgrade that included interior enhancements, lobby remodeling and the addition of a restaurant and 1,700-square-foot fitness center.
The company worked with the city of Campbell on the revitalization plan for The Pruneyard and managed to split the property into three parcels for the office, retail and hotel components. This past February, Oaktree Capital Management bought a majority stake in the office portion, comprising 365,000 square feet of Class A space along with a planned fourth office building, according to the Silicon Valley Business Journal.