San Francisco’s hot hospitality market continues to heat up, as another hotel transaction joins an already packed roster of deals. It was recently reported that the last remaining property in the Larkspur portfolio was traded to a group of Canadian investors for a total of approximately $16.6 million. The Larkspur Hotel Union Square, the property in question, will now undergo a re-branding process that will see it return to its original identity—the Cartwright Hotel.
Located in San Francisco’s downtown area at 524 Sutter St., the hotel is a 114-key, upscale boutique property that is the last of 11 properties Larkspur has sold in a short frame of time.
The sale of the hotel marks the end of the portfolio that Larkspur Hotels owned in a joint venture with Farallon Capital Management. The property has had a troubled history, having fallen out of contract a number of times before its acquisition by Canadian investors. The transaction was arranged by Richard Ehmer of The Ehmer Group on behalf of the buyer and Eastdil Secured on the seller’s behalf.
The San Francisco Business Times reports that the buyer was intent on acquiring a downtown hotel for quite some time and mandated The Ehmer Group to that effect. A number of for-sale hospitality properties in the city include the Clift Hotel, Harbor Court, Holiday Inn at Fisherman’s Wharf, Hotel Rex, Hotel Triton and Hotel Kabuki. However, the fact that Larkspur’s property charged a per-room fee of $145,614 in a market that normally charges around $300,00 was too good a deal to be passed up.
Image courtesy of tripadvisor.com
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