Ashford Prime Extends Ground Lease for San Diego Hilton
The company has extended the lease at the 394-key property by 24 years, with a new expiration date in 2067. The agreement also provides for a further extension opportunity.
By Ariela Moraru
Hilton La Jolla Torrey Pines, San Diego
Ashford Hospitality Prime Inc. has extended the ground lease at the Hilton La Jolla Torrey Pines in San Diego by 24 years, with a new expiration date in 2067. The company holds a 75 percent interest in the four-star, 394-key property in a joint venture between its subsidiaries and Park Hotels & Resorts Inc.
Owned by the city of San Diego, the property is located at 10950 North Torrey Pines Road on 11.4 acres. The asset is adjacent to the Torrey Pines Golf Course and the Torrey Pines State Preserve, as well as Scripps Green Hospital. The property is 15 miles from San Diego International-Lindbergh Field airport. Property amenities include a business center, fitness room, pool, sundeck and tennis court.
Further extensions
“In addition to adding significant term to the current lease, this agreement also provides a significant extension opportunity should we invest in the property at similar levels as we have historically,” said Ashford Prime’s President & CEO Richard Stockton in prepared remarks. The company can further extend the lease by 10 or 20 years, depending on the amount of capital expenditures invested during the term.
Image courtesy of Hilton
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