By Lori Weisberg, SAN DIEGO UNION-TRIBUNE STAFF WRITER
Wednesday, March 17, 2010 at 12:05 a.m.
A private equity firm with ties to the La Costa Resort and Spa has acquired the Carlsbad property in a move that may signal a revival of the once highly regarded hotel.
KSL Capital Partners will take over ownership of La Costa, the resort announced yesterday. The new owners say they plan to make major improvements to the property, including upgrades to the guest rooms, spa, restaurants, pools, meeting space and golf courses.
"It had been the place to be and was a well recognized spa with a great golf course, but it's just been sliding downhill, so it will be great to see it coming back if someone puts some money into it and makes it the great old place it used to be," said hotel broker Bob Kaplan of PKF Capital.
The acquisition by KSL will return ownership of the resort to some of the same individuals previously affiliated with the former KSL Recreation Corp., which purchased the property in 2001 from its then Japanese owners, Sports Shinko.
KSL Capital Partners is taking over ownership of La Costa from Goldman Sachs affiliate Whitehall Street Global Real Estate Limited Partnership, which purchased the resort in 2007 at a time when luxury hotel properties were worth far more than they are in today's depressed market.
KSL executives declined to comment on the specifics of the transaction, saying only the company plans to make further investments in the property.
"La Costa is one of the pre-eminent destinations in the country," said Bernie Siegel, principal of KSL Capital Partners. "The time to once again invest in La Costa was right, and we look forward to investing further in La Costa's already outstanding facilities."
It wasn't clear whether KSL invested money in the purchase beyond the debt it had acquired on the property.
Denise Chapman, La Costa's director of marketing, noted $200 million in capital improvements have been made since 2001.
"La Costa's focus has always been on providing the entire resort experience to our guests and our measure of success is overall customer satisfaction and intent to return," Chapman said.
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-Dan Chapman - Trident Realty Group- JustListedSanDiego.com
This is exciting news for private investors who purchased villas at La Costa. La Costa built and sold the villas in 2006. Owners have exclusive use up to 35% of the year and the resort uses the rooms the remainder of the year. The villas were already an excellent investment, but now their value should only increase as the resort is upgraded. A recent 2,500sqft villa sold for $1,250,000 down from its $1,500,000 price tag in 2006. This particular unit brought in a gross income of $149,000 in the previous year. One can see the advantages of owning such a versatile piece of property. A recent 1,800sqft model listed by the Trident Realty Group was blown out at 990k, down from it's original 2006 price of $1,150,000. The floor plan has never sold for under one million dollars. For more information, please contact Dan Chapman or Mike Chiesl. 858.756.9287 - danchapman@me.com or JustListedSanDiego
The Veterans Administration announced that zero-down loan limits for VA-guaranteed mortgages will be reduced to $437,500 in San Diego County. The high-balance VA jumbo mortgage program started in 2008 and allowed for zero down loans up to $697,000. As prices declined, that number was reduced to $593,750 for 2009.
Median prices across Southern California stabilized in 2009 in response to the high balance loan program, foreclosure stays, and home buyer tax credits. San Diego County's median price rose from $323,000 in October 2008 to $325,000 in October 2009. It is anticipated that the 2010 VA loan limit should facilitate approximately 75% of the sales prices for 2010.
2010 VA loan limits in Southern California:
San Diego - $437,500
Los Angeles - $593,750
Orange - $593,750
Riverside - $417,000
San Bernardino - $417,000
Imperial - $417,000
Former Marine Corps Captain and Naval Academy graduate now helping buyers, sellers, and investors throughout greater San Diego in all price ranges. Military relocation, HAP, and short sale expert.
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