"In a sign of ongoing weakness within the Bay Area hotel market, a San Jose hotel has been bought by a local real estate investment group for far less than the property's prior value. Sonesta Select San Jose Airport was purchased for $14 million, according to documents filed on Aug. 29 with the Santa Clara County Recorder's Office. A San Mateo-based group headed up by Jayesh Keshav, Leena Keshav, Neeraj Keshav, Jai Jalaram, and Krishna Keshav Patel bought the hotel through an affiliate,"
"The purchase comes at a time when the Bay Area hotel market is reeling from an array of problems, including a post-coronavirus hangover, expiring loans that can't be readily refinanced, and wobbly revenue levels. The lodging market's foreclosure and loan delinquency woes have engulfed hotels in Oakland, San Francisco and downtown San Jose, although problems have also surfaced for hotels in Berkeley, Newark, Pleasanton and Pleasant Hill."
Sonesta Select San Jose Airport sold for $14 million to a San Mateo-based investment group led by Jayesh Keshav, Leena Keshav, Neeraj Keshav, Jai Jalaram and Krishna Keshav Patel, with $11.9 million in financing from Tasi Bank. The purchase price was 40.9% below the Santa Clara County Assessor's estimated value of $23.7 million. Bay Area hotels face a post-coronavirus hangover, expiring loans that are hard to refinance, and weak revenues. Foreclosures and loan delinquencies have affected properties in Oakland, San Francisco, downtown San Jose and other cities. Falling property values could reduce tax revenue for cities, counties, regional agencies and school districts.
Read at www.mercurynews.com
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