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MONTEREY, CA-The 105-suite Hotel Pacific here has changed hands for $29 million or $276,000 per door, according to industry sources. The new owner is a joint venture of the Harp Group, Mid-America Development Partners and Equibase Capital Group. The seller, Rick Swig and his Not On Cannery Row partnership, acquired the property in March 2002 for $15.75 million or $150,000 per door.

The Spanish-style Hotel Pacific is spread out in 16 buildings and includes 1,750 sf of meeting space. It is located adjacent to the Monterey Convention Center and is within walking distance of Fisherman’s Wharf, Cannery Row and the Monterey Bay Aquarium. The property will be managed by Portfolio Hotels, an affiliate of the Harp Group. A renovation is planned.

Located at 300 Pacific St., the hotel sits on a ground lease from the City of Monterey that expires in 2034. Including this latest transaction, the ground lessee has changed five times since John Barleycorn Inc. completed construction of the property in 1985. In the last fiscal year, payments on the ground lease totaled slightly more than $411,000.

The new owner is Crescendo Harp Monterey LLC, which includes the Harp Group and Mid-America Development Partners of Oak Brook, IL, according to city documents. The acquisition was announced by Equibase Capital Group, a Chicago-based private equity firm that says it also is a partner in the ownership entity by way of an equity investment. Executives of Harp Group could not be reached Friday for comment.

Harp is part of the Crescendo group of companies, which specialize in developing and managing upscale retail, hotel, resort, mixed-use and restaurant properties. The primary principals of Crescendo are David Bossy, Peter Dumon and Michael Firsel.

The trio joined with Helmut Horn and Graham Hershman to form Portfolio Hotels to manage properties owned by Crescendo and other third party owners. Horn and Hershman were formerly president and COO, respectively, of Coastal Hotel Group, which has managed Hotel Pacific for the past 15 years. Horn and Hershman were involved in the day-to-day operations of the hotel prior to their departure from Coastal in 2004.

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