Press Release: Insignia/ESG
March 8, 2002
New York, NY -- In a compelling first move to assemble a portfolio of boutique hotels, Ivy Oakland LLC entered
into a long-term lease with option to purchase with property owner Jack London Inn LP for the 110-room Jack London
Inn in Oakland, California.
Jeffrey Roe, managing director in Insignia/ESG Hotel Partners’ San Francisco office, negotiated the transaction
on behalf of the tenant, Ivy Oakland. Ivy Oakland plans to invest $3 million in renovations to reposition the
Jack London Inn as a boutique hotel.
Ivy’s managing member, Henry Bose, commented, “This transaction represents the launch of what we expect to become
a significant new boutique hotel company. This newly conceptualized hotel should set the right tone for future
operations as we continue to add properties.”
Roe added, “Ivy has been in the market for over a year, seeking a turnaround opportunity. Jack London is a unique
asset in a dynamic market.”
The full-service Jack London Inn is located at the gateway to Jack London Square. This district – on Oakland’s
redeveloped waterfront – is known for its jazz nightclubs, entertainment venues, retail shops and restaurants.
The hotel is also proximate to Oakland’s revitalized downtown business center.
This transaction represents the 31 st hotel deal completed by Insignia/ESG Hotel Partners since the attacks of
September 11. “Following a brief freeze in transactions in mid-September – when many deals were delayed and a few
were aborted altogether – we have seen a steady ramp-up in sales activity,” commented Tom McConnell, a senior managing
director in Insignia/ESG Hotel Partners’ New York office involved in several recent deals, including the sale of
the Ambassador West Hotel in Chicago on behalf of Wyndham International, and the ongoing disposition of a portfolio
of mid-market assets for a subsidiary of UBS Warburg. “Although the majority of sales have been of properties in
the mid-market segment, which is not surprising given concerns about performance, risk and financing, we expect
to see an increase in transactions activity in all segments in the coming months.”
Insignia/ESG Hotel Partners is a leading full-service real estate group focused exclusively on the hospitality
industry.
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Contact:
Kurt A. Lindsey Senior Associate 212.984-8216 kurt.lindsey@iesg.com