CHALLENGE

The Dolphin Hotel and Retail at 129-133 S Coast Hwy, Oceanside was built in 1927 and sits in a C-2 Zoning Code and is designated historical. The owners at time of sale bought the Hotel and Retail while it was still in operation in 2005 and personally ran the boutique hotel for many years before leasing the operation to a lessee. In early 2015 the Hotel caught fire causing massive interior damage which ultimately lead to a full interior demo.

The Private Client Group comprised of Kipp Gstettenbauer, Ryan King, Curt Allen, and Max Stone was brought on late 2015 to hopefully facilitate a sale of the asset. With Oceanside being an outlying market within San Diego county that has not yet experienced the coast growth as other cities in San Diego, the true challenge was to create demand.

SOLUTION

The lack of supply within the boutique hotel market created opportunities for this asset. Also, the lack of coastal hospitality properties available created another market that the Dolphin Hotel could reach. As there is a large demand for boutique hotels along the coast of California, it was up to the members of the Private Client Group to bring in just the right buyer who can execute the remodel of the hotel.

In order to get results, it was important to take a different approach and respond to the lack of supply within the boutique hotel market as well as the coastal hospitality market. We realized that with such massive construction needing to take place to reposition the asset, a vision needed to be created to show the end product in mind.

RESULTS

In the time we had been marketing the project, an approximately 150-200 prospective buyers showed interest in the property. Along with this long list of prospective buyers, the property was shown and toured 35-40 amongst the team. With all this excitement and interest, the members of the Private Client Group were able to generate roughly 20 offers and multiple buyer interviews.

The team was able filter a buyer who performed on time and close escrow according to plan. With such demand, the property closed and list price and in turn made for satisfied and happy sellers.