Steve Hermann Hotels Sells The Inn at Rancho Santa Fe for $100M
The company bought the property for $43 million a year ago
By Greg Cornfield July 24, 2023 3:25 pm
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Steve Hermann Hotels has unloaded an 85-room luxury boutique resort hotel in north San Diego County for a big profit, Commercial Observer can first report.
The Santa Barbara-based company sold The Inn at Rancho Santa Fe for $100 million after acquiring it in May 2022 for $42.7 million from JMI Realty. Sonnenblick-Eichner Company announced and arranged the latest deal on behalf of the seller. The name of the buyer, an institutional investment fund, was not disclosed.
The resort at 5951 Linea Del Cielo, in Rancho Santa Fe, Calif., is currently undergoing renovations, and set to reopen in the fourth quarter of this year. Last summer, Hermann secured a $50 million debt package for the acquisition and renovation.
“Despite the higher interest rate environment and recessionary concerns, there is still a tremendous amount of capital available from both institutional and private investment funds for quality transactions,” David Sonnenblick, principal and co-founder of Sonnenblick-Eichner Company, said in a statement.
“We were able to generate interest in the acquisition given the quality of the renovation and that it was offered unencumbered by franchise and management,” said Elliot Eichner, another principal and co-founder at the brokerage. “The buyer recognized an incredible opportunity to acquire a five-star luxury resort in a market with extremely high barriers to entry.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
