FOR IMMEDIATE RELEASE
Contact: Jessica Neuman / Lauren Smith
IDEA HALL
(714) 436-0855 ext. 31 / 23
jessica@ideahall.com / lauren@ideahall.com

 

Buchanan Street Partners' Hotel Investments Sales Team Completes Sale of Monticello Inn

 

Larkspur Hospitality purchases Monticello Inn for $20 million

 

Newport Beach and San Francisco, CA (December 12, 2006) - Buchanan Street Partners, a national real estate investment bank, announced today that it has completed the sale of Monticello Inn. The boutique hotel is a landmark 1907 building located at 127 Ellis Street near Union Square. The seller is a partnership controlled by San Francisco-based Dern Greinetz, Inc.

 

Larkspur Hospitality purchased the boutique hotel, which contains 91 guestrooms, including 20 two-room Jefferson suites, the Puccini & Pinetti Restaurant, two retail tenants, and a 17-space subterranean parking lot. Buchanan Street Partners negotiated the purchase price of $20 million, and Larkspur agreed to assume the existing loan. The hotel is strategically situated between Union Square and the San Francisco Centre.

 

"The hotel sector has been improving over the past year," said Thomas Sherlock, managing partner of Buchanan Street Partners. "Our Hotel Investment Sales team arranged the sale of Monticello Inn in just four months, demonstrating the current popularity of hotels in this market and the limited supply of inventory available. We had also, earlier this year, sold the Griffon Hotel in just over 3 months."

 

Sherlock predicts the hotel transaction activity will likely continue throughout 2007 as pension fund interest in the sector has prompted many firms to compete for available hotels.

 

"While we were able to achieve a considerable multiple of net cash flow, when one considers the extraordinary growth in earnings over the prior year, as well as the future projections for earnings growth, we feel the Larkspur folks made a very smart purchase," said John Dern, principal of Dern Greinetz, Inc. "We are proud of taking this asset from its condition in 1987 to this point, and will enjoy watching Larkspur moving it to an even higher level."

 

About Buchanan Street…

Buchanan Street Partners is a national real estate investment bank that provides real estate capital and advisory services for owners and developers and Investment Management for institutional and high-net-worth investors. The firm's advisory services include debt and structured finance and investment sales for commercial, and multi-family properties. Buchanan's Investment Management business invests equity and structured debt capital with local operating partners nationally. Offices are located in Newport Beach, Los Angeles, San Francisco, Chicago, Atlanta and Washington D.C.