The Citizen Hotel has been purchased by a Southern California-based private equity firm. Meridian Capital Group negotiated the $44.5 million in acquisition financing for the purchase of the hospitality asset, according to GlobeSt.com.
The interest-only loan, provided by a national debt fund, features a LIBOR-based floating-rate and two one-year extension options following the initial three-year term. This transaction was negotiated by Meridian managing director, Seth Grossman, and associate, Sarah Kuebler, who are both based in the company’s Carlsbad, Calif., office.
Grossman tells GlobeSt.com: “Downtown Sacramento is in the process of a transformation that has already sparked sustainable growth anticipated to carry forward with momentum for many years to come. The new stadium project only a few blocks from the hotel is part of a $500 million+ public/private development deal. It has been the initial catalyst leading many other developers and employers to follow suit in smaller scale and upon completion next year, there are expected to be in excess of 1.6 million new annual visitors to the downtown area with conservative projections estimating 4,000+ new permanent jobs in the city.”
The 14-story hotel totals 196 rooms and is located at 926 J Street. The Citizen Hotel is a landmark in Sacramento and was designed by famed architect George Selland in the early 1900s. It is conveniently situated within blocks of the state capitol building and the Golden 1 Center, a brand new stadium nearing completion that will be the home to the Sacramento Kings, as well major local events such as concerts and other indoor sports. The hotel also includes Grange Restaurant and Bar, a top-rated “farm to fork” restaurant.
“At closing, the property was immediately converted to a Marriott Autograph Collection hotel and included in the Marriott global reservation system. The hotel will benefit significantly from the traffic driven by Marriott, as well as from local activity increasing due to the new stadium and the overall mass transformation and economic influx happening in Sacramento,” said Grossman.