A 163-room Santa Cruz, Calif. hotel has fetched $40 million. The AAA-rated Coast Santa Cruz Hotel, which faces the Monterey Bay and Pacific Ocean, was bought by a joint venture between Ensemble Investments and AEW Capital Management LP. Northwest Hospitality Group sold the property to the joint venture.

“The sale of the hotel represents one of only a handful of properties that is truly located directly on the beach in California,” says Elliot Eichner, principal of Sonnenblick-Eichner Company. His company arranged the sale of the property. “The purchaser recognized the upside in renovating the hotel given the significant barriers to entry, particularly for a California beachfront location.”