Shortly after the purchase of 7th and Island, CH Founder Douglas Hamm approached the owner of this property given that it was adjacent to the 7th and Island site. In an off-market deal, CH again partnered with a local hotel developer and was able to agree to terms with the seller to purchase the asset. Given that like the 7th and Island property the Baltic Inn also consisted of a current building being used as SRO units (207 of them), CH and its partner had to work closely with the San Diego Housing Commission to ensure they could execute their plan; a complete gut, remodel and conversion to a 96 room hotel. Ultimately they were successful and closed escrow in 2014 with the remodel and conversion of the property to a hotel starting only a few months after closing. Hamm sold his interest in the project prior to completion of the conversion and later it was subsequently sold to Pineapple Hospitality. The project conversion to a 96 room hotel was fully completed and opened in the summer of 2015.
*The unused development rights from this property were assigned to the partners’ adjacent property on 7th and Island in a strategic value add move that had not been done before in Downtown San Diego.