Burnham Pacific Properties Sells Interest in Beverly Garland's Holiday Inn Hotel

Strategic Insights -

Burnham Pacific Properties, Inc., a California-based real estate investment trust (REIT), has sold its 70% interest in the Beverly Garland's Holiday Inn Hotel, a 255-room hotel in North Hollywood, California, to Rio Vista Development, its former co-owner and operator. The sale, which closed on December 27, 1995, will generate net proceeds of approximately $10.1 million for Burnham Pacific, allowing the company to reduce its borrowings and potentially repurchase shares of its common stock. The transaction is part of Burnham Pacific's strategy to dispose of non-core properties and focus on retail assets.

Key Takeaways:

  • Burnham Pacific sold its 70% interest in the 255-room Beverly Garland's Holiday Inn Hotel to Rio Vista Development, its former co-owner and operator.
  • The sale will generate net proceeds of approximately $10.1 million for Burnham Pacific.
  • The company intends to use the proceeds to reduce its borrowings and potentially repurchase up to 1 million shares of its common stock.
  • Burnham Pacific's Chief Executive Officer, David Martin, stated that the sale is part of the company's strategy to dispose of non-core properties.
  • Burnham Pacific and Rio Vista Development acquired 50% interests in the hotel property in 1973.
  • The hotel was reflagged as a Holiday Inn in 1993, and renovation was completed earlier this year.
  • Burnham Pacific Properties was founded in 1963 and owns commercial real estate properties throughout California.

Statistics:

  • $10.1 million: Net proceeds generated by the sale for Burnham Pacific.
  • 255 rooms: Number of rooms in the Beverly Garland's Holiday Inn Hotel.
  • 70%: Percentage of interest sold by Burnham Pacific.
  • 6.5 acres: Size of the land parcel associated with the hotel.
  • 1993: Year the hotel was reflagged as a Holiday Inn.
  • 1995: Year the renovation of the hotel was completed.

Sources:

  • PR Newswire, "Burnham Pacific Properties, Inc. Sells Interest in Beverly Garland's Holiday Inn Hotel" (December 27, 1995).
  • Burnham Pacific Properties, Inc. press releases, available through PR Newswire's Company News On-Call fax service and on PR Newswire's Web site.