CBRE Hotels Arranges the Sale of the Hotel De Anza

A historic, boutique Silicon Valley asset

San Francisco, California – September 16, 2014 – CBRE Hotels is pleased to announce the sale of The Hotel De Anza located in San Jose, California. The property was sold for an undisclosed price to Lowe Enterprises Investors (LEI) on behalf of an investment client. Concurrent with the sale, LEI affiliate, Destination Hotels, took over the hotel management and will continue to operate the property as an independent, boutique hotel.

The Hotel De Anza was last renovated in 1990 by De Anza, LLC the family ownership group that owned and operated the property for the last 24 years. LEI plans a series of renovations beginning in 2015, which will accentuate the historic features of the property and create a tech-savvy experience for the local business community. The renovations will be comprehensive and will include the guestrooms, lobby, common areas, restaurants, fitness center and meeting facilities.

“The Hotel De Anza has an outstanding location and iconic physical attributes, which attracted an especially high level of interest from hotel investors keen on acquiring Silicon Valley assets,” said Henry Bose, Senior Vice President of CBRE Hotels. “As a result, CBRE Hotels was successful in generating multiple competitive bids for the hotel.”

The AAA-Four Diamond hotel is ideally located in the heart of downtown San Jose and, as such, it appeals to both business and leisure travelers. It is within easy walking distance of the convention center, SAP Center arena, the downtown business district and the popular San Pedro Square entertainment district, and is just three miles from the San Jose Airport.

Listed on the National Register of Historic Places, the 100-room, 10-story hotel was designed by famed architect H. H. Weeks and opened in 1931. It was renowned for its architecture as well as its social element, drawing celebrities and political figures as guests. Luminaries such as Eleanor Roosevelt, The DuPonts, Henry Kaiser, Jack Dempsey, Susan Hayward, Paulette Goddard and Fred MacMurray, were just some of the legendary guests of that era to visit the De Anza. The 25 foot “diving lady” mural painted on the west side of the building in 1951 to advertise the heated pool remains a local landmark as does the rooftop neon sign. The current property features La Pastaia Italian restaurant with accompanying Caffe La Pastaia grab-and-go concept, Hedley Club which often features live jazz music, 5,800 square feet of meeting/function space and much more.

The sale of the Hotel De Anza, which CBRE Hotels arranged on behalf of the seller, is the second San Jose hotel that the company’s San Francisco office has transacted in the last 30 days, and is the team’s 21st completed sale in the last 24 months.

“Northern California continues to be one of the most targeted regions in the world for hospitality real estate investment,” said Mark McDermott, Senior Vice President of CBRE Hotels. “The region’s robust economy and compelling supply-demand dynamic has spurred a wave of diverse investor activity, ranging from global institutional capital to private investors.”

CBRE Hotels is a specialized advisory group within CBRE Group, Inc. providing brokerage, valuation and capital markets services to companies in the hotel sector. CBRE Hotels is comprised of over 150 dedicated hospitality professionals located in 37 offices across the globe. For more information, please visit our website at www.cbrehotels.com.

 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

About Lowe Enterprises Investors
Lowe Enterprises Investors (LEI) provides real estate investment management services on behalf of a select list of institutional and high net worth clients and partners through individually managed accounts, commingled fund relationships and targeted investment programs.  The firm has been responsible for $7 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s.  LEI has been a leading value-added investor through multiple cycles, employing equity and structured debt in its investment strategies.  Based in Los Angeles, LEI is an affiliate of Lowe Enterprises, a national investment, development and management firm. Since inception in 1972, Lowe has acquired, developed or managed more than $21 billion of real estate assets. 

About Destination Hotels
Destination Hotels (Destination) is the largest owner and operator of independent hotels, resorts and residences in the United States. Headquartered in Denver, Colorado, Destination is an industry leader with more than 40 years of hospitality management and development experience. Located in premier destinations, the portfolio is continuously growing with more than 40 luxury and upscale properties from coast to coast. The award-winning company operates 20 golf courses, 19 full-service spas, six IACC-certified conference centers and 125 bars and restaurants. The privately-owned company is a subsidiary of Lowe Enterprises. For more information on Destination Hotels & Resorts, visit http://www.destinationhotels.com.