September 8, 2016 | Real Estate
Los Angeles-based Laurus Corporation divested the former Carmel Highlands Golf Course in San Diego’s Rancho Penasquitos community to an affiliate of Manhattan Beach-based 33North Development Group for a reported $14.5 million. In 2011, the investment and development firm purchased the 114 acres, along with the adjacent DoubleTree hotel, which it still owns.
Laurus’ investment strategy produced roughly 17% annual unlevered IRR and a nearly 1.6X equity multiple on the land component alone. The new owner is seeking to develop a luxury residential community that complements new open and green areas, upscale amenities, and renovated hotel.
Laurus Corp.’s Jean Paul Szita says, “When we first acquired the property, we immediately recognized the need to separate the viable hotel operation from the unfeasible golf course operation, which was on a parcel of land holding significant upside potential in the hands of the right residential developer.”
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