Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CERRITOS, CA-Sunstone Hotel Investors, the San Clemente-based REIT that has executed a host of deals since going public, has closed on its previously reported acquisition of the 203-room Sheraton Cerritos Hotel. The sale was brokered by Jordan L. Richman of Grubb & Ellis’ Hospitality Group in West Los Angeles

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.