SAN FRANCISCO—The Ehmer Group, a member of Hotel Brokers International, closed the transactions of the Casa Loma Hotel here, as well as the sale of a hotel development site in Oakland, CA. Richard Ehmer, president of The Ehmer Group, brokered both of the transactions.
The Casa Loma Hotel is located at 610 Fillmore Street. Purchased for nearly $5 million, the Casa Loma offers European-style lodging accommodations that include 48 rooms in total, with 16 rooms per floor. The seller was a San Francisco-based investment company that owns and operates primarily multi-family residential properties in transitional, inner-city neighborhoods in the San Francisco Bay Area and in New York City. The buyer was a local hotelier that owns and operates both tourist and residential hotel properties in San Francisco and throughout Northern California. The buyer has plans to manage the property and continue operations as an independent boutique hotel. The Ehmer Group represented both the buyer and seller in the transaction.
The hotel development site in Oakland is situated at the entrance to the Oakland Airport. This 1.95-acre site was purchased for $2,800,000. The buyer, a local hotel developer, plans to develop a 120 room SpringHill Suites by Marriott on the site. The hotel is tentatively planned to open in 2016. The seller was a local owner/operator/developer.
“The Oakland Airport Market continues to see increased growth in both ADR and Occupancy in the lodging sector,” stated Ehmer. “Due to the location of this site and the proximity to the entrance of the Oakland Airport, it is one of the most desirable locations to build a new hotel project in this MSA. With almost no new supply of lodging product in the Oakland market, we will continue to see increased demand for rooms and steadily improving operating fundamentals, as we are throughout the entire San Francisco Bay Area. This particular site was on the market for three years, but due to current market conditions and the steadily increasing demand for rooms in the Oakland market and surrounding areas, there were multiple buyers interested in developing this site. This is just another example of the healthy economic outlook on the hospitality market in the San Francisco Bay Area, which continues to be one of the strongest hotel markets in the United States.”