Pension fund strikes deal for Warner Center hotel property.

AN Illinois pension fund is under contract to buy the 463-room Warner Center Marriott for about $85.3 million, according to sources close to the deal.

The fund, managed by Chicago-based Stone-Levy LLC for the Teachers' Retirement System of the State of Illinois, struck the deal for the 16-story hotel with Westbrook Partners LLC, which paid $69.5 million for the property as part of a 13-hotel purchase from Wyndham International Inc. last year.

None of the principals involved in the transaction returned calls seeking comment.

The 17-year-old Marriott, at 21850 Oxnard St., has been a strong performer in the San Fernando Valley market. It boasts an 80 percent occupancy rate and an average daily room rate of $120, compared with Valley market that averages $100 per night and 67.4 percent occupancy, according to PKF Consulting.

The nearly 22 percent increase in value over the course of a year is reflective not only of its performance but the increased competition for hotel assets in the midst of a recovering travel industry.

"It's one of the highest prices for the sale of a hotel this year," said Jordan L. Richman, a senior vice president in Grubb & Ellis Co.'s L.A. hospitality group. "Even though it's a high price, there are barriers to entry in that market and it's probably one of the most successful hotels in the Valley outside the Sheraton Universal."

Walton Street Capital, a Chicago-based private equity firm, bought the Sheraton Universal in June from Vivendi Universal SA for $49 million, or $112,000 per room.

Tishman Realty & Construction Co. Inc. will take minority stake in the property, and its Tishman Hotel Corp. subsidiary will manage it.

Tishman Hotel Corp. manages 17 hotels, including the 572-room Four Points Sheraton Los Angeles International Airport hotel.

Westbrook was represented by Eastdil Realty. Steven L. McKenzie, the Eastdil managing director with the hotel's listing, declined comment.

High-Carb, Low-Cost

Pasta Pomodoro Inc., a San Francisco-based chain of moderately priced Italian bistros, has made its first foray into L.A. County.

The company, in which Wendy's International Inc. has a 25 percent interest, established its first L.A. location last month when it opened a Pomodoro Cucina Italiana in Manhattan Beach.

The new restaurant is the firm's 33rd, all on the West Coast, and marks an effort at re-branding. It already has units of its Pasta Pomodoro in Irvine and Newport Coast. The company is opening all its new restaurants under the Cucina Italiana name.

The re-branding is reflected in broader menu offerings, as well, said Chief Operating Officer Michael O'Keefe.

"Sometimes people can be stopped by one word," he said. "With the bad rap carbohydrates get these days, we wanted to let people know we have all sorts of stuff on our menu."

The Orange County stores will be converted to Pomodoro Cucina Italianas. "We're just waiting approval for the signage in those cities," O'Keefe said.

Cleaning House

California Pizza Kitchen Inc. appointed five new executives to reform how the company selects and opens new restaurant locations.

Underperforming new restaurants forced the company to write-down $13 million in the quarter ended Sept. 28. California Pizza Kitchen co-founders and co-chief executives Larry Flax and Rick Rosenfield resumed the reigns of the company in July vowing to reform the site selection process.

Four of the five new appointees had worked under Flax and Rosenfield before the pair took non-managerial roles in the company in 1997, and are returning to the company from stints at other companies.

Of Note

In its 2003 mid-year sales summary, Costa Mesa-based hotel brokerage Atlas Hospitality Group reported that Los Angeles County led California in hotel sales dollar amounts. The number of sales increased by 23 percent, dollar volume of transactions is up by 84 percent and the median price per room edged up 4.5 percent, according to the firm's report ...

The South Bay Galleria, owned by Cleveland-based Forest City Enterprises Inc., completed a $7 million renovation. The refurbishment includes a new Mediterranean-style limestone arched entry and a square with a water fountain and new landscaping.

Staff reporter Andy Fixmer can be reached by phone at [phone], ext. 263, or by e-mail at [e-mail].