Woodridge Capital Partners LLC, a Los Angeles-based real estate developer and investor, will pay about $200 million for the hotel, said Heather Turner, vice president of acquisitions at Maritz Wolff. Woodridge will work with Howard Marks’s Oaktree Capital Management LP, also based in Los Angeles, on the purchase, she said in an interview. Fairmont Hotels & Resorts will remain the property’s manager.
The 591-room luxury hotel in San Francisco’s Nob Hill neighborhood was put up for sale in June as part of a Maritz Wolff plan to cut the size of its portfolio. An Oaktree fund and Michael Rosenfeld, Woodridge’s founder, announced in November that they purchased the Fairmont Orchid luxury hotel in Hawaii.
Maritz Wolff, founded in 1994 by Lew Wolff and Philip “Flip” Maritz, has been unable to get city permission to convert a portion of the Fairmont San Francisco into a residential tower. The Los Angeles-based firm acquired its stake in the hotel in 1998.
‘Implement the Improvements’
“Our desire to improve this Nob Hill property did not materialize as we had hoped, and we are confident that perhaps a different ownership will be able to implement the improvements at the hotel, which we think will be beneficial to the city of San Francisco,” Wolff, also co-owner of the Oakland Athletics baseball team, said in an interview last June.
Maritz Wolff’s acquisition of the Fairmont San Francisco was part of a purchase that included several other Fairmont hotels (FHR), including properties in Dallas and New Orleans. The firm sold the Dallas hotel in 2006 and the one in New Orleans the following year, according to the company’s website.
Oaktree in September made an investment in the Beverly Hilton hotel in Los Angeles, averting a sale of the landmark property, a person with knowledge of the situation said at the time. The company manages assets of about $75 billion for public and private pensions, corporations, sovereign-wealth funds and other investors.
Marks and Rosenfeld didn’t immediately return e-mail and telephone messages seeking comment. Lori Holland, a spokeswoman for Fairmont Hotels & Resorts, declined to comment.
The agreement was reported earlier today by newsletter Real Estate Alert.
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