Hotelier Snags Sunnyvale Land For Planned AC Hotel
Hotelier Snags Sunnyvale Land For Planned AC Hotel
July 7, 2015
Plans to develop a new AC Hotel in Sunnyvale took a step forward last week as developer T2 Hospitality closed on a 1.25-acre retail site at 725 S. Fair Oaks Ave.
The buyer paid $5.55 million for the site, which includes a 7,782-square-foot restaurant building.
The deal represents something of a sequel for Southern California-based T2, which opened a 145-room Courtyard by Marriott last fall at 660 W. El Camino Real.
Brokers Randol Mackley and Bruce Frazer of SRS Real Estate Partners sold T2 the Courtyard site, and returned to the hoteliers again with the opportunity on Fair Oaks.
“We approached them and said we think this will be a great hotel site,” Mackley told me.
City records show that T2 has submitted an application to develop a 187-room, five-story AC Hotel on the site. AC Hotel is the upscale, boutique-style limited-service hotel brand being rolled out by Marriott. The region’s first AC Hotel is currently under construction in downtown San Jose, courtesy of TPG Hospitality.
This is not even T2’s only new project in Sunnyvale. City records show T2 has also submitted plans for a 201-room AC Hotel and a 123-room Residence Inn at 1235 Bordeaux Drive. That building is currently owned by Supertex, public records show.
The activity shows the strength of the region’s hospitality market as well as the ongoing trend of older properties getting redeveloped for higher and better uses.
“It’s an ongoing example of properties being recycled,” Mackley said. “Land is so scarce. Upgrading, even going a bit vertical — this is what the market is pursuing, property that is underutilized.”
“We approached them and said we think this will be a great hotel site,” Mackley told me.
City records show that T2 has submitted an application to develop a 187-room, five-story AC Hotel on the site. AC Hotel is the upscale, boutique-style limited-service hotel brand being rolled out by Marriott. The region’s first AC Hotel is currently under construction in downtown San Jose, courtesy of TPG Hospitality.
This is not even T2’s only new project in Sunnyvale. City records show T2 has also submitted plans for a 201-room AC Hotel and a 123-room Residence Inn at 1235 Bordeaux Drive. That building is currently owned by Supertex, public records show.
The activity shows the strength of the region’s hospitality market as well as the ongoing trend of older properties getting redeveloped for higher and better uses.
“It’s an ongoing example of properties being recycled,” Mackley said. “Land is so scarce. Upgrading, even going a bit vertical — this is what the market is pursuing, property that is underutilized.”
