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Thursday, Sep 21, 2023

Trust Dispute Leads to Local Ownership Change

The last three properties of a five-hotel portfolio mostly located in the Valley area have been sold out of receivership. Triglid, the San Diego-based receiver on the portfolio, announced that three Marriott hotels were sold to BRE Atlas Property Owner LLC of Irvine for an undisclosed sum. Two of the hotels, a 93-room TownPlace Suites by Marriott at 1712 Newbury Road, and a 120-room Courtyard Marriott at 1710 Newbury Road, were in Thousand Oaks. The third was in San Luis Obispo. The sale follows an August deal to sell a Holiday Inn Express and a Best Western in Valencia for $21 million. Those two were purchased by Excel Hotel Group in San Diego. Trigild was appointed receiver for the five hotels, previously owned by Ocean Park Hotels Inc. in San Luis Obispo, late last year. Triglid Chief Executive Bill Hoffman said his firm took over after the members of a family trust associated with Ocean Park got into a legal dispute amongst each other. Hoffman said Triglid was granted permission by Monterey Superior Court Judge Susan J. Matcham to sell the assets for what “was in everyone’s best interest.” The assets, especially the two in Thousand Oaks, were highly sought after. Hoffman said he got as many as 40 offers for the hotels. The transactions come as the hotel market is red hot. Hospitality consultant Bruce Baltin, senior vice president at PKF Consulting USA in Los Angeles, said the L.A. County occupancy rate is about 78 percent, a historically high figure. And if nearby sales are any indicator, the two hotels in Thousand Oaks could have gone for as much as $40 million. In August, Century City real estate investment firm Laurus Corp. paid nearly $90 million, or about $190,000 a key, for the 474-room Marriott at 21850 Oxnard St. in Woodland Hills. “We got a lot more money than I think the trust expected,” said Hoffman, who declined to discuss the dispute as it is ongoing. Boulevard Development Thousand Oaks has approved a 45-unit upscale apartment building near its main commercial corridor where the city has been pushing to increase business. Justus Commercial Group of Camarillo plans 12 one-bedroom and 33 two-bedroom units at 1815 and 1825 Los Feliz Drive – a few blocks from Thousand Oaks Boulevard. “The whole idea was to build a luxury apartment building in the downtown area to attract the young professionals,” said Jeb Adams of RE/MAX Olson & Associates in Westlake Village, who is representing the developer. Thousand Oaks adopted a plan a few years ago that sought to revitalize the area and create a more walkable shopping district. The City Council helped along the developer by approving a change of zoning last month to allow it to build a more high-density project than typical for the site. Among the amenities planned for the complex are a swimming pool, wide hallways and patios in all units. Some may be furnished and reserved for extended short term stays by traveling executives. Adams said rents would be in line with the rest of the market, such as the Avalon Thousand Oaks, where a one-bedroom can set you back $1,700 a month. Adams would not disclose costs for the project, but Justus purchased the 1.5-acre lot in May of last year for $2.15 million, according to real estate data firm CoStar Group Inc. The lot and a single-family home on it were sold by Faith Tabernacle of Thousand Oaks, a church that was run out of the house and closed last year. Gamer Acquisition Independent video game developer Respawn Entertainment last month spent $10 million for a two-property office portfolio in Chatsworth. The properties at 20131 Prairie St. and 9301 Winnetka Ave. total about 73,000-square-feet and were acquired from National Credit Union of Austin, Texas. The seller took ownership of the properties from Telesis Community Credit Union, which failed in 2012 The buildings were 5 percent leased at the time of the sale, and will soon be vacated so Respawn can occupy both buildings for its new headquarters, according to CoStar. Respawn was previously located at significantly smaller space in Van Nuys. The company’s first game, Titanfall, was released in March and has been a wild success. Staff Reporter Elliot Golan can be reached at (818)316-3123 or egolan@sfvbj.com.

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