Heritage Marina Hotel to be Condofied
July 3, 2007
As I’ve been repeating for a month, hotel-to-condo conversion will be the hot new thing in residential development in San Francisco. And here is the latest example — the Heritage Marina Hotel located at 2550 Van Ness Avenue has just been acquired for this very purpose.
An investment group comprised of Canadel Development in Canada, and Polar Investments, an Israeli company controlled by Ziel Feldman, paid $25 million for the hotel. They plan to convert it into 100 luxury condominiums and add additional space. The conversion is expected to take 18-24 months, and cost $54 million.
Proceeds from the final sale of the apartments are estimated at $122 million, which means they will be sold for a fairly steep price. It’s an area sorely in need of new residential inventory, so they probably won’t have difficulty selling if the quality is good.
(For those who have wondered, this is why the Little Joe’s restaurant is closed.)
Hotel Conversion, Continued
June 22, 2007
Here is an example of a small hotel that could be converted to condominium use. It’s in a superb location — 851 California (corner of Powell), at the top of Nob Hill. Some of the units have the sort of views that currently command around $1,000 per square foot.
The five-story hotel currently has a total of 80 fully vacant rooms. If you didn’t want to convert them to condos, you could sell them as fractional ownership units, rent them as apartments, or just fix the place up and use it as a hotel. The asking price is $10 million.
