Jones Lang LaSalle Hotels has arranged the sale of the sub-leasehold interest in the 258-room Holiday Inn at the Park on behalf of an offshore owner, 1221 South Harbor Boulevard Inc., to buyer New Age Anaheim LLC.
Given its proximity to the main gate of Disneyland and the high barriers to entry in the highly coveted Anaheim Resort Specific Plan area, “this was a highly desireable asset for both domestic and international investors,” said John Strauss, Vice President of Jones Lang LaSalle Hotels, Los Angeles. “The Walt Disney Corporation is currently developing a second theme park, Disney`s California Adventure, and has recently announced plans for yet a third gate. The expansion of Disneyland into two defined venues - as of the first quarter of 2001—will essentially double the size of the current park. Annual visitation is estimated to grow by at least 50 percent in coming years and average length of stay at local hotels is anticipated to increase from 1.5 to 2.25 nights post expansion given the wider selection of recreational and meeting venues. Accordingly, we received five to ten offers from a host of regional, national and international investors who are looking to gain a presence in this strategic resort market.”
“This was a complicated transaction for several reasons,” said Arthur Buser, Executive Vice President and head of the West Coast team of Jones Lang LaSalle Hotels. “For the last 12 to 18 months there has been heavy freeway construction blocking the hotel entrance, which has impaired the property`s cash flow. Second, there was an 80-year ground lease in place as well as a highly structured sub-ground lease. The buyer had the foresight to recognize the outstanding potential of this property.”
Jones Lang LaSalle Hotels, the leading hotel investment banking services group in the world, provides clients with value-added investment opportunities and advice. Its recent two-year success story includes the sale of 17,027 hotel rooms to the value of $2.2 billion in 75 cities and advisory expertise for 200,036 rooms to the value of $29.8 billion across 278 cities. Jones Lang LaSalle Hotels` services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle (NYSE: JLL) is the world`s leading real estate services and investment management firm, operating across more than 100 key markets on five continents.