February 15, 2017
Los Angeles-based Infinity Realty Advisors added another hotel in Orange County to its portfolio. On behalf of an undisclosed buyer, the Asian investment firm acquired the 444-key Fairmont Newport Beach from Sunstone Hotel Investors for $125 million, which represents a 5.2% capitalization rate on NOI.
An $18.5-million modernization plan will be initiated, and the asset will be rebranded as a Renaissance Hotel under the Marriott flag. The 10-story property will be repositioned from a traditional resort to a contemporary upmarket business hotel.
Located on 7.3 acres at 4500 MacArthur Blvd. near John Wayne Airport, the value add acquisition comes on the heels of Infinity’s acquisition of the Irvine Hilton.
Infinity represented the buyer and will serve as asset manager. Eastdil Secured acted as exclusive advisor to the Aliso Viejo, CA-based seller.
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