Pleasanton Sheraton Sold

The Sheraton Pleasanton Hotel has a new owner. The inn on Stoneridge Mall Road had fallen on hard times due to the struggling economy and was in foreclosure. The new owners, Pleasanton Lodging LLC paid $12.3 million for the 170 room hotel on February 3.

Pleasanton Lodging LLC is planning on putting in an additional $2 million for upgrades, on top of the $4.6 million upgrade carried out by the previous owner.

The Sheraton hotel at 5990 Stoneridge Mall Road in Pleasanton, Calif., January 2009. ( Jim Stevens, Bay Area News Group)

From the Contra Costa Times:

Amid a struggling commercial real estate market, that price was a relative bargain, according to principal executives with the buying group, which is a partnership of realty investment firms Sethi Enterprises and Kapoor Enterprises.

“It was an attractive price,” said J.P. Sethi, the top executive with the eponymous Sethi Enterprises. “I would say the price was 30 percent below what you would have seen in normal times.”

To further sweeten the deal, the original lender that foreclosed on the hotel, Mesa West Real Estate Income Fund, provided financing to the buyers to accomplish the purchase. The transaction was arranged through PKF Capital, a realty brokerage that specializes in hotel properties.

“We will have a totally brand-new lobby, we will upgrade the bar, the restaurant, some of the new rooms, improve the exercise and recreation center, add new carpeting, wallpaper, furniture,” Sethi said.

It’s good to see the Sheraton in solid hands. The Tri-Valley needs well run hotels to support local businesses and help drive the local economy. The Sheraton is well located to take advantage of future growth expected to come with the opening of the West Dublin/Pleasanton BART station.