LOS ANGELES, Sept. 7, 2016 /PRNewswire/ -- Laurus Corporation, a Los Angeles based real estate investment and development company, announced the sale of the former Carmel Highlands Golf Course in San Diego's Rancho Penasquitos community.
Laurus previously purchased the 114 acres along with the adjacent DoubleTree hotel, and subsequently closed the course due to escalating operational and water costs that were significantly in excess of revenues.
"When we first acquired the property, we immediately recognized the need to separate the viable hotel operation from the unfeasible golf course operation, which was on a parcel of land holding significant upside potential in the hands of the right residential developer," said Jean Paul Szita, President and Co-founder of Laurus Corporation. "We are pleased the buyer, a proven and experienced development group, also recognized its potential and look forward to seeing the area prosper with new development that will add value to an already established community."
The investment strategy has proven to be successful for Laurus, which was able to produce approximately 17% annual unlevered IRR and a nearly 1.6X equity multiple on the land component alone. Initial studies show that the future residential community can accommodate a significant number of luxury single family homes along with inviting new open and green areas and upscale amenities. Combined with the adjacent renovated hotel, a new residential community will significantly increase the appeal and quality of life of residents in the surrounding region.
The parcel is located in the highly recognized Poway Unified School District and conveniently located along Interstate 15 with easy access to employment centers in Sorrento Valley, University Town Center and Downtown San Diego. The City of San Diego has the 8th largest population within the United States, and is home to some of Southern California's top attractions, including miles of beaches, the Gaslamp Quarter, The San Diego Zoo and Seaport Village, a 14-acre waterfront shopping, dining and entertainment complex.
Laurus Corp., via an affiliate, continues to own the adjacent DoubleTree hotel, which will soon be rebranded as Hotel Karlan San Diego, part of the DoubleTree Collection by Hilton. The team is nearing completion on a $14 million hotel repositioning tailored to entice business and leisure travelers. The upgrades will enhance the guest experience by creating an upscale, premium lodging facility with a full array of exclusive accommodations where guests can enjoy the open outdoor space and local culinary selections.
About Laurus Corporation
Laurus Corporation is a real estate investment and development company that specializes in hotels and resorts, office buildings, multifamily and mixed-use properties. With more than $1.2 billion in assets under management, Laurus employs an entrepreneurial investment strategy designed to consistently achieve attractive risk-adjusted returns by creating capital appreciation opportunities through repositioning, restructuring, re-development and intensive post acquisition asset management. The company was founded in 1999 by Andres and Jean Paul Szita, and is affiliated with Ethika Investments, LLC, a real estate private equity firm. www.lauruscorporation.com
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SOURCE Laurus Corporation