MENLO PARK – An upscale Menlo Park hotel whose owners had defaulted on a home loan has been foreclosed on its loan, a grim new entry in the accommodation industry‘s catalog of woes at the era of coronaviruses.
The Park James Hotel, located at 1400 El Camino Real near downtown Menlo Park, is now owned by a subsidiary of a Midwestern company whose specialties include purchasing delinquent home loans, according to documents filed on 4 February with San Mateo County officials.
The owners of the hotel had become past due on a loan issued in 2019 by the employee retirement plan of Consolidated Electrical Distributors Inc., according to county public records.
Funding for the hotel totaled $ 32 million, according to county ownership documents.
The loan defaulted in September 2020 – less than a year when funding was provided in December 2019, an unusually short period for commercial real estate funding to fall into default.
PJ Hotel, a subsidiary of Illinois-based Bixby Bridge Capital, now owns the hotel, according to county records.
Once the hotel’s finances stabilize, it is poised for success as the accommodation industry rebounds after a brutal 12 months of coronavirus-related setbacks.
“The Park James is a new upscale luxury boutique hotel, located in the heart of Silicon Valley,” said Alan Reay, president of Atlas Hospitality Group, which tracks the accommodation market in California. “It is positioned to perform very well over the long term as the market recovers from COVID and business travel picks up. “
The owner entity that defaulted on the home loan is an affiliate whose managers are James Bay Area CEOs Pollock and Jeffrey Pollock, according to county and state documents.
James Pollock is the CEO and Jeffrey Pollock is Vice President of the Pollock Financial Group, based in Portola Valley.
The Park James Hotel was built in 2017 and opened in 2018 by its developer and primary owner, according to county and state business records.
The Bay Area’s leisure and hospitality sector has been among the hardest hit by the layoffs. Restaurants, hotels, drinking places and entertainment and art centers lost 195,400 jobs in the one-year period that ended in February, or 45% of all jobs lost in the Bay Area during those 12 months.
The Park James Hotel is located a short distance from the Facebook and Google headquarters and close to Stanford University.
The hotel has a restaurant called Oak + Violet Restaurant and an iPad in the room.
When the Park James Hotel opened in 2018, it received rave reviews from guests and professional observers.
“The boutique 61-bedroom property has a lot to offer, introducing a ton of unexpected amenities meant to impress its tech-savvy clientele, who will likely stay in business,” the Robb Report wrote in late 2018.