San Jose Marriott Hotel, a downtown icon, is bought for $83 million
CBRE paid $83 million for the 506-room San Jose Marriott Hotel, according to industry sources familiar with the deal terms. CBRE executives wouldn’t discuss the purchase price. The 28-story hotel is located on South Market Street and West San Carlos streets next to the city’s convention center, now undergoing a major expansion and renovation.
“The current health and likely future prosperity of Silicon Valley play very strongly into this investment,” said John Sauter, managing principal with CBRE Investors. “The market is very strong. The convention center looks like it will be a very good demand generator.”
The San Jose Marriott was put on the market with an asking price of $80 million to $85 million. The seller was Prudential Real Estate Investors.
“There is tremendous buyer and developer interest in the Silicon Valley hotel market,” said Alan Reay, principal analyst and president of Atlas Hospitality Group. “In Northern California, the Silicon Valley hotel market is second only to San Francisco.”
Developers are planning to construct at least 650 new rooms in San Jose to capture some of that strong business in the South Bay.
The Silicon Valley lodging market is fed by strong corporate demand from the significant concentration of high-tech companies in the region,” said
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Source: George Avalos (2013). San Jose Marriott Hotel, a downtown icon, is bought for $83 million, Oakland Tribune?http://www.mercurynews.com/real-estate/ci_23285382/san-jose-marriott-hotel-downtown-icon-is-bought published May 21, 2013. Viewed May 22, 2013,