New Developer Takes Wheel on Fat City ProjectWednesday, August 29, 2012
Hotel investment and management firm T2 Development of Newport Beach has taken over the dual-hotel project in the works at the former Fat City site in downtown San Diego.
A spokeswoman for original developers GLJ Partners and Jonathan Segal said T2 Development will assume primary control and responsibility for the Fat City project, after a partnership that includes T2 and GLJ purchased the 1.27-acre site at 2137 Pacific Highway.
Carlsbad-based GLJ will maintain a “minor consulting role” and Segal, a San Diego architect and developer, will have no further involvement in the project, the spokeswoman said.
According to brokerage firm Cushman & Wakefield, which represented the seller, original development entity Frank Fat Properties LP sold the property to FC Acquisitions Co. LLC, which includes T2 and GLJ, for an undisclosed price.
FC Acquisitions will proceed with development of the 61,840-square-foot lot, where a 239,100-square-foot hotel building housing two brands is planned. City planners have approved the six-story project, which includes a total of 364 hotel rooms, 2,500 square feet of retail and restaurant space, spas, meeting rooms and related amenities.
Developers have said the project is expected to break ground in January.
T2 Development is led by Mike Patel, co-founder of Tarsadia Hotels, and Mont Williamson. The company’s current hotel portfolio includes Hard Rock Hotel San Diego, and it has three other San Diego hotel projects in its development pipeline, according to its website.