Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of a four-property portfolio of La Quinta Inns. Two of the hotels are located in St. Louis, Mo., one is in Tallahassee, Fla. and one is in Knoxville, Tenn. All but one was rebranded immediately at sale and the fourth will be rebranded in two to three months. The portfolio sold for $11,800,000.
Chris Gomes, a senior associate in Marcus & Millichap’s Dallas office led the sale, along with Allan Miller, an associate vice president investments in the firm’s San Antonio office, and David Greenberg, a vice president investments in Fort Lauderdale. The seller is a Dallas-based hospitality firm and the buyer is from California. Anne Williams, a senior associate in Marcus & Millichap’s Memphis, Tenn. office, and Helen Zaver, a senior associate in Atlanta, assisted in the sale of the asset located in Tennessee. William Holman of the firm’s St. Louis office is the firm’s broker of record in Missouri.
“The location of these assets and their critical mass of rooms make this transaction lucrative from a pure ‘price per key’ perspective,” says Gomes. “Rebranding is one piece of the new owner’s value-add strategy.”
When the rebranding is complete, two of the properties will be Baymont Inn & Suites hotels and two will take the name Motel 6.
The properties are:
• A 136-room interior corridor hotel in the Maryland Heights suburb of St. Louis, Mo. that was built in 1987 on 2.8 acres and is accessible from Interstate 270. Features include ample outdoor parking, a vending area, an exercise room and an on-site guest laundry facility. The property was operated as a Baymont Inn & Suites until 2006.
• A 104-room interior corridor hotel built in 1977 on 2.7 acres and located minutes from Lambert – St. Louis International Airport in St. Louis, Mo. The hotel features complimentary daily breakfast, wireless Internet access, ample parking, a vending area, an exercise room, an outdoor swimming pool and an on-site laundry facility for guests. A single-story restaurant located on the hotel’s east side is leased to a third party and operates as a Denny’s. The hotel is a 2013 TripAdvisor Certificate of Excellence award winner.
• A 134-unit mixed corridor hotel situated on 2.7 acres in Tallahassee, Fla. that is easily accessible from Highway 27, the Apalachee Parkway. The property benefits from a variety of tourism and leisure attractions in the area, including Lake Jackson, the Florida State Capitol building and Alfred B. Maclay Gardens State Park.
• A 130-unit mixed corridor hotel located on a 3.6-acre lot in Knoxville, Tenn. Built in 1986 and renovated/upgraded on a regular basis, the property features a freestanding restaurant that is leased to a third party.
“This transaction highlights our ability to source opportunistic capital for deployment in multiple noncore markets,” says Gregory A. LaBerge, national director of the firm’s National Hospitality Group (NHG). “This portfolio sale brings the number of hotels sold so far in 2014 by the NHG to 39.”
About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 6,600 transactions in 2013 with a value of approximately $24 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com