Courtyard by Marriott,
San Diego, California
Inventive and determined adaptive re-use created a unique hotel and long-term profits for a partner.
An old bank building, circa 1927, with just nine tenants occupying 5 percent of the space - a clear case of under-utilization. Sage Hospitality Resources recognized its potential, and engaged Amstar as its equity partner. In short order, Amstar and Sage created a stunning hotel with 227 rooms, 17 suites and a signature penthouse. Amstar funded the up-front equity, guaranteed the debt, kept the design and construction partners on track and on task, and negotiated a highly advantageous tax credit.
Moreover, the project rapidly became a catalyst for the economic revitalization of the Gaslight district of downtown San Diego. Plaudits from local design professionals and the state came quickly, along with a listing in the National Register of Historic Places. It reached stable occupancy just as fast, within six months of opening. After achieving its return objectives, Amstar designed an exit strategy that ensured the new capital partner would accommodate Sage’s long-term ownership objectives.