The seller of the hotel, which is at 12725 Center Court Drive and adjacent to the Cerritos Center for the Performing Arts, was Transpacific Development Co., which developed the eight-story hotel in the Cerritos Towne Center in 1990. The property features 10,000 sf of meeting and banquet space, an on-site fitness center, a restaurant and a swimming pool.
Sunstone paid Transpacific $24.7 million for the hotel, but the REIT's total costs for acquiring the property amounted to $26.8 million, according to Sunstone. The San Clemente-based company said its costs included the purchase price, transaction closing costs, nearly $1.3 million of capital expenditures and the assumption of a $9.1 million fixed-rate note bearing interest at approximately 8.8% per year with a maturity date of December 2009.
Sheraton had managed the property since its inception, but at the time Sunstone announced its agreement to buy the Sheraton Cerritos, the company said that after the close of the sale, it would be operated under a franchise agreement with Sheraton and managed by Sunstone Hotel Properties Inc. The latter is a division of Interstate Hotels and Resorts.
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