Sale of San Diego's U. S. Grant Hotel for about $80 million to a syndicate has been announced by The Sickels Group.
Sale of 300 limited partnerships for $30 million was the final stage in the financing package for the rehabilitation of the landmark hotel, according to T. Patrick Smith, president of The Sickels Group.
He said the syndication was accomplished through the New York-based Sybedon Corp., which will be the general partner. The 300 $100,000 limited partnerships were sold through Prudential-Bache Securities. Sybedon agreed to purchase the hotel last December for $10 million, with the sale contingent on completion of the syndication offering.
To complete the financing, The Sickels Group also arranged $32 million in construction and permanent financing from Home Federal Savings and a $6-million Urban Development Action Grant from the Department of Housing and Urban Development. Sickels will continue as the developer of the hotel, which is undergoing complete rehabilitation. It is scheduled to open in December with 283 luxury rooms, including 61 suites.