In a significant transaction within the hospitality sector, the 94-room Vivo Flex Living hotel in Torrance has been sold for $14.2 million to an entity affiliated with the Texas-based Nortex Hotel Group, according to public documents reviewed by The Registry. This sale marks a key development in the local real estate market, particularly given the broader trends impacting hotel sales across California.
The property, located at 4111 CA-1, was initially listed for $15.5 million by Marcus & Millichap’s Tammen Hotel Group. The final sale price of $14.2 million equates to approximately $151,064 per room, slightly below the original asking price of $164,893 per room. The previous sale of the property occurred in 2021, when it traded hands for $15.1 million, or about $160,638 per room.
Spanning 49,460 square feet, the hotel is designed for extended stays, with each of the 94 units featuring kitchenettes—a crucial amenity for long-term guests. The property also offers potential for future expansion, as there is an opportunity to add eight more units through the renovation of an existing storage floor. This growth potential, combined with the property’s strategic location in Torrance, likely contributed to its appeal to Nortex Hotel Group.
Torrance is a city known for its strong business community, hosting nearly 400 company headquarters, making it a prime location for business travelers. The hotel benefits from its proximity to major highways, including the I-405 and I-110, and its prominent frontage on the Pacific Coast Highway, which sees over 35,000 cars in traffic daily. Moreover, the property is just 2.3 miles from Torrance Beach, enhancing its attractiveness to both business and leisure travelers.
Despite a general slowdown in hotel sales across California over the past year, Los Angeles County has remained a leader in the sector. According to a report by Atlas Hospitality Group, the county recorded 34 hotel sales totaling over $1.2 billion during the latter half of 2023. The sale of Vivo Flex Living adds to this activity, reflecting continued investor interest in well-located hospitality assets within the region.
For Nortex Hotel Group, this acquisition represents a strategic expansion into the Southern California market, aligning with broader trends of out-of-state investors seeking opportunities in high-demand areas. As the market continues to evolve, the sale of Vivo Flex Living underscores the ongoing dynamism within the hospitality sector, even amidst broader economic uncertainties.
