Blackstone Makes Reservations at the Hilton

New York private equity firm Blackstone Group LP has acquired the largest hotel in Glendale after foreclosing on the previous owners, adding to its growing property investment in the city. The 351-room Hilton hotel at 100 W. Glenoaks Blvd. was part of a 12-property portfolio foreclosure this month that moved the property into Blackstone’s hands. Eagle Hospitality Properties Trust Inc. failed to make interest payments on $606 million of debt that Blackstone purchased in May. Blackstone has taken the Purchase, N.Y. company’s entire hotel portfolio. Blackstone did not respond to requests for comment. In September, Eagle began shopping its properties in an attempt to avoid the foreclosure, but was unable to find a buyer in time. Blackstone has made other moves to increase its hotel holdings this year. It purchased the Motel 6 Inc. chain for $1.9 billion in May. And last month, it agreed to a $1.2 billion deal for Apple REIT Six Inc., a real estate investment trust focused on hotel properties. It also owns Hilton Worldwide Inc. and has an interest in Extended Stay America Inc. Blackstone also has steadily increased its presence in the Glendale real estate market this year, acquiring office properties downtown and investing millions to renovate the properties. In October, the firm announced a $61 million financing deal with Starwood Property Trust Inc. to renovate two downtown Glendale office properties, 801 N. Brand Boulevard and 700 N. Central Avenue. It has done similar upgrades to other buildings in town and two years ago made a $500 million investment in the city’s largest shopping center, Glendale Galleria. Shopping Center Sale Camarillo Plaza, a high-end shopping center, is under contract and a step closer to being sold. If a bankruptcy judge approves a deal in the works, the property, which had been at the center of a dispute between owner Aaron Arnold Klein and his wife, Tina, and Wells Fargo Bank will change hands early next year. The center, located along the 101 Freeway, is set to fetch $18.2 million if the private buyer is approved, according to brokers working on the deal. “There will be an overbid process after the court approves the sale, so we’ll have another round of bidding, but I think it’s an 80 percent chance the buyer will be same when we’re done,” said Tom Lagos, senior vice president of Colliers International’s Los Angeles office, who represents the Kleins in the deal. The owners of the 74,000 square foot property at 1701 E. Daily Drive in Camarillo filed for Chapter 11 bankruptcy protection last December following a payment dispute with Wells Fargo. The bank said the owners had fallen behind in loan payments on the property by nearly half a million dollars. The owners contended that the bank had failed to properly handle a loan for tenant improvements. While the sale process has proceeded, the Kleins have remained operators of the property. The buyer was selected in August, following an open bidding process that closed in June. The property is 94 percent occupied and anchored by an International Market grocery store, a Hobby People store and Brendan’s Irish Pub. El Warner, Christianne Mehia and Alexandria Beausoleil, also in Colliers’ L.A. office, are also involved in the sale. Hospitals Merge Los Robles Hospital & Medical Center in Thousand Oaks purchased nearby Thousand Oaks Surgical Hospital last month from Trophy Club, Texas company Cirrus Health Corp. The acquisition means that Los Robles now owns all medical facilities in Thousand Oaks. “Combining the strengths of TOSH and Los Robles Hospital and Medical Center allows us to offer our community another healthcare dimension within the context of a full service, acute care hospital,” Greg Angle, chief executive of Los Robles, said in a statement. “It’s a win-win for the community.” Thousand Oaks Surgical Hospital has 71 beds and offers surgical services, mostly outpatient or elective surgeries. It will remain in its current location, operate under the same name, and employees will remain in their current positions. The 50,000-square-foot building was built in 2004, and was 100 percent occupied at the time of the sale. Staff reporter Kelly Goff can be reached at (818) 316-3135 or by email at [email protected]