By Jon Peterson
The hotel market across California has seen a number of transactions recently, which may be one of the reasons Los Angeles-based Lowe Enterprises has put up for sale the 100-room Hotel De Anza property in San Jose. Lowe is expecting to see some interest in the property and it has set the asking price in the mid $30 million range, according to sources that are aware that the property is up for sale.
The current ownership of the property has awarded the listing on the sale to the Newmark Lodging Capital Markets Division, which is based out of New York. This group had declined to comment when contacted for this story.
Lowe Enterprises has been the owner of the property for several years. It had acquired the property for $20.4 million, or $204,000 per key, in 2014, according to public records. This company had moved the management of the property to its Destination Hotels operation. Hyatt Hotels purchased the operating entity from Lowe Enterprises in 2018, and it now manages the property.
The hotel is a full-service boutique property. It was first constructed in 1931. When Lowe acquired the property, it was planning $4 million of new improvements to the asset, as stated by industry sources. The property covers a total of 0.39 acres of land and has a total of 5,500 square feet of meeting space.
Hotel properties in general are garnering more attention from capital sources now, according to hotel industry experts. Part of this is fueled by increased hotel occupancies, which have been improving in recent months as more segments of the population feel comfortable in renting rooms in hotels.
Hotel De Anza is located at 231 West Santa Clara Street, which is in the heart of downtown San Jose. It is near a variety of entertainment and restaurant options, including the SAP Center, which is the home to the San Jose Sharks of the National Hockey League and also a major concert venue for the region, as well. Some other places are the Children’s Discovery Museum, San Jose Museum of Art and The Tech Interactive. Adobe’s sprawling urban campus is also just a couple of blocks away and the San Jose International Airport is a short drive.
West Coast Commercial Real Estate News