San Jose Marriott

Hotel and Real Estate San Jose MarriottWhat: A 506-room, 26-story, full-service upscale hotel attached to the 425,000 square foot San Jose McEnery Convention Center.

Where: Downtown San Jose, at the corner of Market and San Carlos Streets. The one-acre site was a former service station.

Who: The Redevelopment Agency of the City of San Jose was the owner of the land. The hotel was developed by SCS Advisors on behalf of Walton Street Capital, and is operated by Marriott International.

When: The hotel opened in April of 2003 – the first new hotel construction in downtown San Jose for ten years.

How much: $105 million was spent developing the Marriott, $10.5 million of which was provided by the City.

MR&A’s role: As hotel development advisor to the City Redevelopment Agency, Mr. Robinson assisted in the preparation of the Request for Proposals (RFP) and the developer selection process in 1998. In 1999 and 2000, he acted as business advisor in the negotiations, preparing extensive financial analyses and assisting in the structuring of the Disposition and Development Agreement and 50-year participation rental agreement.

Results: The Convention Center now has the additional first-class rooms it needs to continue to successfully attract large groups; the hotel has been well-received by the San Jose visitors; and its restaurant, Arcadia is managed by the award-winning chef Michael Mina. In future years, the City will receive significant amounts of participation rent from the property.


Argonaut Hotel

Best Argonaut HotelWhat: A nautically-themed, 252-room upscale boutique hotel, with a restaurant, lounge, meeting space, retail shops, and a National Maritime Museum and Visitors Center. The four-story, 180,000 square foot brick structure, which was formerly known as the Haslett Warehouse, was once the largest fruit cannery in the country.

Where: The Fisherman’s Wharf area of San Francisco, across from the Hyde Street Pier between Jefferson and Beach Streets, one block from the San Francisco Bay.

Who: The National Park Service is the owner of the 1907 historic structure. Kimpton Hotel and Restaurant Group was both the lessee and operator for the first 15 years.

When: The hotel opened in August of 2003, after an extensive two-year renovation, and a nearly disastrous fire midway through the conversion.

How much: Kimpton spent approximately $40 million renovating the Haslett Warehouse.

MR&A’s role: As financial advisor to the National Park Service (NPS), Mr. Robinson assisted in the developer selection process in 1998 by conducting the financial evaluation of the competitive hotel development proposals. In 1999 and 2000, he acted as business advisor to NPS in the lease negotiations with the selected developer. Mr. Robinson’s mediation skills, knowledge of hotel economics, and business acumen were invaluable in structuring the 60-year lease.

Results: The Park Service receives annual rent of over one million dollars for the once-neglected and underutilized historic structure, and visitors to Fisherman’s Wharf are treated to the area’s newest and most upscale hotel.


Lodge at Torrey Pines

Lodge at Torrey PinesWhat: A five-diamond, 170-room luxury resort designed in the California Craftsman style, with two restaurants, 13,000 square feet of meeting space, retail shops and a full-service, 9,500 square foot spa.

Where: Along North Torrey Pines Road in La Jolla, adjacent to the 18th hole of the Torrey Pines Golf Course. An older, 74-unit motel, the Inn at Torrey Pines, was demolished to make room for the construction of the Lodge.

Who: The City of San Diego is the land owner. Evans Hotels is the lessee, developer and operator. The City owns the adjacent Torrey Pines Golf Course.

Grand Canyon AppraisalWhen: The Lodge opened in March of 2002, receiving its coveted five-diamond rating in its very first year of operation.

How much: Over $50 million was spent developing The Lodge.

MR&A’s role: As business advisor to the City’s Real Estate Assets Division, Mr. Robinson assisted in the lease negotiations with Evans Hotels in 2000. The lessee was willing to demolish his existing motel and construct the Lodge on the City’s property, and Mr. Robinson was able to provide the financial analysis and deal structuring skills needed to execute a lease amendment to allow the new development to occur.

Results: The Lodge at Torrey Pines is the only five-diamond hotel in the City of San Diego, with operating results exceeding all expectations. Its fine dining restaurant, A.R. Valentein, has won numerous awards for its outstanding California cuisine.


Grand Canyon Appraisal

arizona-grand-canyonWhat:The private concessioners who operated the visitor-serving operations at the South Rim of the Grand Canyon reached the end of their contract, and the market value of the nearly 300 concessioner-constructed buildings needed to be determined.

Where: In northern Arizona, the Grand Canyon is one of the Seven Wonders of the Natural World. The South Side of the canyon is the more heavily-visited side, and the subject of this assignment. The North Side of the Park is far less developed, less frequently visited, and is operated as a separate concession.

Who: The National Park Service is the owner of the land, and of some of the buildings. Xanterra Parks and Resorts (formerly the Fred Harvey Company and Amfac Resorts) has been the concessioner since the formation of the Park.

MR&A’s role: As Appraiser and Expert Witness, Mr. Robinson assisted in the preparation of the appraisal, and provided expert testimony in the subsequent arbitration hearing. He was responsible for the income approach of the valuation of both the buildings (owned by the concessioner) and the land (owned by the government).

Results: While the specific results of the appraisal are confidential, through this process, the value of the property was set, and the Park Service subsequently re-let the concession contract to Xanterra, for an increased amount of rent, for the next 15 years. Mr. Robinson has received numerous honors and awards for his creative and innovative methodology for the valuation of these unique real estate assets.


Cavallo Point

Cavallo PointWhat: A 142-room upscale National Park lodge, with a restaurant, lounge, meeting space, retail shop, and a wellness center/health spa. The property, which was formerly a 100-year-old Fort known as Fort Baker, was once the guardian of the northern portion of the Golden Gate for the U.S. Armed Forces.

Where: At the northern terminus of the Golden Gate Bridge from San Francisco. The property sits at the foot of the Bridge, adjacent to Sausalito and the San Francisco Bay.

Who: The National Park Service is the owner of the 1905 historic structures and the land. Fort Baker Retreat Group is the lessee, and Passport Resorts is the operator.

When: The hotel opened in June of 2008, after an extensive two-year renovation.

How much: Approximately $100 million was spent renovating the Fort.

MR&A’s role: As financial advisor to the National Park Service (NPS), Mr. Robinson assisted in the developer selection process in 1999-2000 by conducting the financial evaluation of the competitive hotel development proposals. From 2000 to 2006, he acted as business advisor to NPS in the lease negotiations with the selected developer. Mr. Robinson’s mediation skills, knowledge of hotel economics, and business acumen were invaluable in structuring the 60-year lease.

Results: The Park Service receives annual rent for the once-neglected and underutilized historic structures, and visitors to the Bay Area are treated to the first new Lodge in a National Park in nearly ten years. Additionally, the Lodge is the home venue for the non-profit Golden Gate Institute, which convenes conferences, workshops, meetings and seminars on topics involving environmental sustainability.


Manhattan Beach Marriott

Manhattan Beach MarriottWhat: A 400-room, 7-story, full-service upscale hotel and adjacent 9-hole executive golf course.

Where: Parkview Avenue in Manhattan Beach, California. The site is a part of the Manhattan Village master-planned community, developed by Chevron Land in the mid-1980s on a former oil tank farm.

Who: The City of Manhattan Beach is the owner of the land. The hotel is operated by Interstate Hotels, and owned by Interstate and Marriott Hotels.

When: The hotel, which is the largest hotel in the city, opened in 1986.

ManhattanBeachMarriott1How much: $44 million was spent developing the Marriott, which opened originally as a Radisson.

MR&A’s role: As hotel development advisor to the City, Mr. Robinson assisted in the preparation of the Request for Proposals (RFP) and the developer selection process. He acted as business advisor in the negotiations, preparing extensive financial analyses and assisting in the structuring of the ground lease agreement.

Results: The hotel, which is the only golf-oriented resort in the LAX-South Bay area, has been well-received by area visitors; the golf course is well-run by the hotel operator; and the City receives considerable amounts of rent and Transient Occupancy taxes from the hotel.