The Granada hotel building in downtown San Luis Obispo is getting a makeover.
Lunacy Club LLC, owner of the Morro Street building, is renovating the 1920s-era structure, transforming the 12,000-square-foot property into a 17-room hotel with an eclectic mix of businesses below, said Kimberly Walker, one of four partners in the Lunacy group.
Lunacy bought the building in March 2010 from San Luis Obispo-based American Perspective Bank after the previous owner, local developer Patrick Aurignac, defaulted on his loan and lost the building to foreclosure in June 2010.
Walker said Aurignac’s plans called for demolishing the building and turning it into a mixed-use project. The focus of the new owners is to update the existing structure and complete a seismic retrofit of the property, which houses five commercial units. The original brick façade will be restored.
Walker said the current tenants will be retained, and one new tenant added.
Tenants now include Granada Bistro, a lounge and wine bar, and Borracha, a manufacturer of wine wipes and wine-related products. Both are owned by Walker.
Baxter Moerman jeweler and San Luis Art Supply are also in the building.
Walker would not disclose Lunacy’s investment in the project but said she expects construction to be complete within six months.
The Lunacy group declined to disclose how much it’s spending to refurbish the building, which Walker said had fallen into disrepair.
“The bank is working with us to get us to a point where we’re not just putting Band-Aids on the building but turning it into something that this town can be proud of and the community is excited about,” Walker said.