Sunstone portfolio up for sale

The following foreclosed portfolio is on the market and ready to be sold.  This is from Sunstone Hotel Investors, Inc that defaulted on the loan last year.  Portfolio is of institutional quality with great flags.  The portfolio includes 1,245 guestrooms as follows:

• Residence Inn Manhattan Beach, California – 2 floors 176 suites, Santa Monica Pier
• Holiday Inn San Diego Downtown – 16 floors, 220 rooms, 1400 SqFT meeting space
• Courtyard San Diego Old Town – 4 floors, 160 rooms, 4900 SqFT meeting space
• Holiday Inn Express San Diego Old Town – 3 floors, 176 rooms, 3,075 SqFT meeting space
• Salt Lake City Marriott University Park - 7 floors , 189 rooms , 10,335 SqFT meeting space
• Provo Marriott Hotel & Convention Center, Utah – 9 floors , 324 rooms, 28,000 SqFT meeting space

Current market transactions and pricing on these assets would suggest a range from 65,000 per key upwards to 125,000 per key.  We would estimate a fair price at about 72,000-77,000 per key (without consideration of full due diligence) for an estimated bid transaction price of $95MM for the portfolio.  From a simple replacement cost valuation at 125,000 per key would provide a transaction of about 62 cents on the replacement cost value.   This transaction is not a diversified portfolio that fits our parameters, as is too heavy in Southern California, otherwise would be something we would further investigate.   Being represented by Jones Lang LaSalle….JLD