By Jon Peterson
Seattle-based Vulcan Real Estate has expanded its real estate operations out of the Puget Sound region for the second time with its $40.9 million acquisition of the 57-room Redbury Hotel in Los Angeles.
“The purchase of the Redbury marks Vulcan’s first investment in the Los Angeles area. The Redbury has an excellent iconic location at Hollywood and Vine. The area has seen a lot of improvements in recent years with new development and infrastructure investments, and we anticipate that this Hollywood renaissance will continue. The area is becoming more and more dynamic and that is why it appeals to us. With Hollywood’s high barriers to entry, we are excited to have this opportunity to enter into this market,” says Lori Mason Curran, director of real estate for Vulcan.
“We anticipate that this Hollywood renaissance will continue”
Another transaction that the company did outside its core market of Seattle was the acquisition of a newly constructed office building in Tempe, Ariz., the Tempe Gateway Office Building. Completed in 2009 and developed by Opus West, the eight-story, 260,000-square-foot Class A office building is located in the heart of downtown Tempe, a transit-oriented community characterized by a variety of housing, office and retail services. The company had acquired the property when it was vacant in June of 2010 for $35 million from the project’s lender. It leased the property up and then sold it in December 2012 to an undisclosed buyer for $66.1 million, accroding to company statements.
Vulcan will continue to consider pursuing transactions that are located outside of the Seattle market. “We regularly evaluate a range of real estate investment opportunities including some in other non-Seattle markets. We would not rule out further investments outside of the Seattle, but our primary focus will continue to be our development efforts in the Puget Sound region,” said Curran. She did not indicate what other markets it might consider.
Vulcan acquired the Redbury Hotel form Los Angeles-based sbe. The property is an all-suites hotel that also includes the Cleo restaurant. The property opened for business in 2010. sbe will continue to manage the property and work closely with the new owner on all future plans and operations. This company is a Los Angeles-based lifestyle hospitality firm that develops, manages and operates hotels, restaurants and nightclubs.