"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, state business records show. The new ownership group also landed $11.9 million in financing from Tasi Bank, according to county real estate records."
"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 on Aug. 29 to a San Mateo-based investment group led by Jayesh Keshav and others through an affiliate. The buyers secured $11.9 million in financing from Tasi Bank. The sale price was 40.9% below the Santa Clara County Assessor's estimated value of $23.7 million. The Bay Area lodging market faces a post-coronavirus hangover, expiring loans that are hard to refinance, and weak revenue. Foreclosures and loan delinquencies have affected hotels across Oakland, San Francisco, and downtown San Jose, with additional problems in Berkeley, Newark, Pleasanton, and Pleasant Hill. Major San Francisco hotels face receivership after a $725 million financing default. Falling property values can reduce revenue for cities, counties, regional agencies, and school districts.
Read at The Mercury News
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