China-Based Shenzhen Takes Second Troubled LA Hotel
Los Angeles Times reports: Following up trade for the troubled Marriott Los Angeles Downtown, which Real Capital Analytics’ (RCA) tracked in March 2010, Shenzhen New World Group Co, Ltd recently closed on the Sheraton Universal hotel in Los Angeles’ Universal City. As aptly stated by the Los Angeles Times, the sale of the Sheraton to Chinese investors shows, “…a growing trust in a recovery of the hospitality industry and the rising interest of Asian investors in U.S. commercial property.”
Shenzhen spokesman Ming Yu told the Times that the firm's recent acquisition was in “…a great location” and added that, “…we see the hotel business getting better in the next year or two.” The Chinese firm is currently pursuing more commercial real estate opportunities in the US, though is joined by only a limited number of other players from the mainland. RCA’s Peter Slatin remarked to the Times that investors from China are “still less common than real estate buyers from Hong Kong and Taiwan.”
The 451-story Sheraton became another casualty of the drastic property correction and recession over 2008-09. The hotel’s former owner, Lowe Enterprises, purchased the property at the height of the market in 2007 for $122 million and invested $25 million in renovations. However, RCA tagged the property as delinquent on its payments in July 2009, when Lowe fell into trouble with its creditors.
View the full article on Los Angeles Times: China-Based Shenzhen Takes Second Troubled LA Hotel
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Posted by: Nina Turner