MENLO PARK – An upscale hotel next to downtown Menlo Park has defaulted on its mortgage, further proof of the challenges facing the besieged accommodation industry in the Bay Area.
Park James, a small boutique hotel in Menlo Park, has been threatened with foreclosure by its lender because loan payments for the property are past due, according to documents filed in San Mateo County.
The hotel has 61 rooms, was built in 2017 and opened in 2018 by its developer and primary owner, a Bay Area group, according to county and state business records.
Park James primarily caters to an upscale clientele visiting Silicon Valley, usually on a business trip.
The property defaulted on a loan issued in 2019 by the employee retirement plan of Consolidated Electrical Distributors Inc., according to San Mateo County documents.
The funding totaled $ 32 million, according to property records.
The ownership entity that defaulted on the home loan is an affiliate whose managers are James Bay Area Business Executives Pollock and Jeffrey Pollock, according to county and state documents.
James Pollock is the CEO and Jeffrey Pollock is Vice President of Pollock Financial Group, based in Portola Valley.
The coronavirus has plagued the accommodation industry with growing economic problems. In 2020, hotels and restaurants cut 127,400 jobs, leaving the industry with 33.6% fewer jobs in the nine-county area compared to 2019.
The Bay Area accommodation and food industries have been hit even harder than what happened across the state last year. California hotels and restaurants lost 499,600 jobs in 2020, down 29.1% from industry totals at the end of 2019.
When the Park James Hotel opened in 2018, it received rave reviews from guests and professional observers.
“The boutique 61-room property has a lot to offer, introducing a ton of unexpected amenities meant to impress its tech-savvy clientele, who will likely all stay on business,” the Robb report wrote in late 2018.
Park James is located a short distance from the headquarters of the titan of the social network Facebook and is quite close to the headquarters of the search giant Google.
The hotel has a restaurant called Oak + Violet Restaurant and in-room iPads.
“Taken together, it all adds up to a place that, while focused on business, is undeniably cool,” said the Robb Report.