LOWE BUYS SHERATON UNIVERSAL LANDMARK SELLS FOR $122 MILLION.

Byline: GREGORY J. WILCOX Staff Writer

UNIVERSAL CITY -- The Sheraton Universal Hotel, the defining landmark of the southeastern San Fernando Valley, was bought by Lowe Enterprises for $122 million, officials said Wednesday.

Lowe, a Los Angeles-based developer with holdings across the country, will spend $20 million on a ``comprehensive, top-to-bottom renovation'' of the 436-room hotel.

Lowe snagged an iconic property, said Jack Kyser, vice president and chief economist at the Los Angeles County Economic Development Corp.

``You have in the Sheraton a very strategically located property. A property that works well for meetings and one that people feel comfortable with. It's sort of a natural meeting place,'' he said.

``This is a very savvy buy.''

Lowe bought the property from a venture consisting of affiliates of Walton Street Capital LLC and SCS Advisors Inc. on behalf of Lowe Hospitality Investment Partners. This is a $266 million fund that invests solely in hotel and resort properties.

``We have been looking for a solid acquisition opportunity to take advantage of the strong Los Angeles hotel market,'' Bob Lowe, chairman and chief executive officer of Lowe Enterprises, said in a statement.

``The Sheraton Universal is an ideal fit with our investment strategy that targets well-located hotels in growth markets where we can apply our extensive hospitality experience to enhance the value and performance of the property.''

The 20-story hotel's top floor offers panoramic views of the Valley and is a popular venue for meetings, dinners and other gatherings. It was built in 1969 on an 8.5-acre hilltop across from Universal Studios and was expanded nine years later.

Lowe Enterprises was formed in 1972. In 2005, it had a record year with $750 million in new investments nationwide, $2 billion in resort and planned community properties under development, $850 million of commercial properties under development and $640 million of real estate sales activity at its resort and planned community properties, according to the company's Web site.

Lowe is buying into a strong market, Kyser said.

Last year the Valley boasted a hotel occupancy rate of 79.3 percent, and the average room rate increased 8.9 percent to $124.78.

By comparison, the county's occupancy rate last year was 79 percent and the room rate increased 10 percent to $146 a night.

When occupancy rates approach 80 percent, it means that hotels might have to start turning away business, Kyser said.

``The market is incredibly strong. There is not a lot of new capacity coming on the market, and this is a known property in a good location.''

greg.wilcox(at)dailynews.com

[phone]