Dynamic City Capital has acquired Hyatt Place San Francisco Downtown, a 230-story hotel Oracle Park, the home field of the San Francisco Giants. It is Dynamic City Capital's first acquisition of the year. The purchase price and the name of the seller was not disclosed.

Built in 2019, the hotel has 4,300 square feet of retail space, a lobby bar, and a 24/7 market. In addition to its proximity to Oracle Park, the property sits between the South of Market and Mission Bay neighborhoods. It has easy access to public transportation, including light rail and Caltrain. According to Ryan Phelps, DCC's chief investment officer, "The brand, market, and specific location fit our strategy to acquire best-in-class hotels in prime markets."

Although the San Francisco market was destabilized by the pandemic, there were several notable hotel transactions in the market in the last year. In July, Pebblebrook Hotel Trust entered into a contract to sell the Villa Florence San Francisco for $87.5 million. A partnership between AWH Partners and The Roxborough Group agreed to purchase the property, which is subject to standard closing costs and expected to close in the third quarter 2021. Villa Florence San Francisco is a 189-room hotel in San Francisco's Union Square, along the Powell Street Cable Car Line. It is walking distance to Chinatown and Moscone Center.

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Earlier in April, Pebblebrook Hotel Trust sold the 416-room, Kimpton Sir Francis Drake Hotel in San Francisco, CA, for net proceeds of $157.6 million after customary closing costs. Pebblebrook Hotel Trust originally acquired the Sir Francis Drake Hotel in 2010 for $90 million, as the company's second hotel. The property delivered significant gain on sale and an 11-year compounded internal rate of return of over 12% a year.

In July Park Hotels & Resorts sold two of its San Francisco hotel properties in two separate transactions. The company sold Le Meridien San Francisco and Hotel Adagio for a total of $303.5 million, representing a 6.1% cap rate on 2019 net operating income, including capital expenditures. The sales price equates to $572,000 per key for the 531-room portfolio.

 

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.