BRE Atlas Prop. Owner LLC v. KS Development, LLC CA2/2

BACKGROUND

The purchase and sale agreement On January 3, 2020, Buyer and Seller signed an agreement for the purchase and sale of nine select service hotels located in California2 for a total purchase price of $265 million (the PSA). The PSA specified a 45-day due diligence period (ending on

The Seller entities are subsidiaries of, or under the control of, Blackstone Real Estate Group. The nine hotels were the Courtyard by Marriott San Luis Obispo, Courtyard by Marriott Thousand Oaks, Town Place Suites by Marriott Thousand Oaks, Hampton Inn & Suites Thousand Oaks, SpringHill Suites by Marriott Irvine, Homewood Suites by Hilton San Francisco, Hampton Inn & Suites West Sacramento, Residence Inn by Marriott San Marcos, and Residence Inn by Marriott Bakersfield. Select service hotels are generally room-only operations or hotels with limited services.

2 February 18, 2020) and an initial closing date 30 days thereafter on March 19, 2020.3 Deposit and liquidated damages Section 2.3 of the PSA required Buyer to make two deposits totaling $9 million. The first deposit of $3 million was due upon signing the PSA. The second $6 million deposit was due at the close of the 45-day…