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Larkspur Hotels, LLC, to Purchase RiverPlace Hotel and Rental Properties In Portland, OR |
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CORTE MADERA, Calif., May 20 Karl Hoagland, chairman, president and CEO of Larkspur Hotels, LLC (LH), an independent hotel company, today announced the company's completion of due diligence for the purchase of the RiverPlace Hotel and Rental Properties from RiverPlace Associates, LLC, a Seattle-based investment partnership. |
In addition to the 84-room hotel and 84-seat Lucere Restaurant, the purchase includes the 39,000 square foot RiverPlace Office Building; the 20,000 square foot Esplanade shopping plaza that is home to McCormick and Schmick's Harborside Restaurant; the 207-slip RiverPlace Marina; Portland's only floating restaurant, Newport Bay, and 147 parking spaces for the office, retail, and marina. The transaction is expected to close in July.
"We are thrilled to be purchasing this wonderful, independent, luxury hotel," said Hoagland. "The RiverPlace's unique design, waterfront location, and large number of loyal guests make the RiverPlace a brand unto itself, fitting perfectly with our strategy to acquire high-quality independent hotels on the West Coast. We are excited to invest in Portland's downtown and are committed to becoming a larger part of the community."
In March of 2003, Larkspur announced it had raised $107 million of new capital in a $90 million first mortgage provided by Greenwich Capital Management and $17 million in preferred equity financing. This favorable long-term financing, along with a $100 million commitment of growth capital, will enable Larkspur Hotels to make the RiverPlace Hotel the first of several planned acquisitions towards building a portfolio of independent, differentiated hotels. Larkspur Hotels is actively looking to acquire independent three and four diamond hotels on the West Coast in strategic business or resort locations, as well as in-fill hotel sites for development of Larkspur hotels in select areas.
According to Melvin I. Brady, President, RiverPlace Management, Inc., "RiverPlace is a special place of which we have been proud to be a part of for the last 15 years. It is difficult to let go of this property given our personal interest and years of successful management. However, we believe that our choice of Larkspur is excellent in order to continue the high standard we have established for this high profile location."
RiverPlace is an example of innovative mixed use development and urban planning that serves as the gateway to the North Macadam/South Waterfront Urban Renewal area. It is part of the Downtown Waterfront Urban Renewal Plan established in 1975 and implemented by the Portland Development Commission in 1979 as the South Waterfront Development Program. During 1980-1983 the land was prepared for development. In 1983, after a design competition, Cornerstone Development Company won the rights to develop Phase 1 consisting of the RiverPlace Condominiums, Esplanade, Marina, Office and Hotel. The RiverPlace Hotel, Esplanade, Marina and Condominiums were completed in 1985. The office building and athletic club were completed in 1987. Additional phases for parking and housing were completed in 1990 and 1995 and office in 1998.
Again per Melvin I. Brady, "Our long history with RiverPlace is an indication of our ownership's personal interest and commitment to the City of Portland. The pending purchase by Larkspur indicates their similar commitment to the future of the City. The ownership is appreciative of the loyalty and performance of our local employees directed by Vice President, Larry Summerton, whose hard work has made this mixed use development a success."
The RiverPlace Hotel and Rental Properties transaction was brokered by Edward R. Dundon of the Dundon Company, a commercial real estate broker and hospitality specialist in Portland, OR.
Larkspur Hospitality Development and Management Company (LHDMC), an independent hotel company based in Corte Madera, Calif., owns and operates 16 hotels comprising three brands (Larkspur Landing, Candlewood Suites and Hilton Garden Inn) in suburban areas of Northern California and the Pacific Northwest.
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