Marcus & Millichap has closed the $15-million sale of the Residence Inn by Marriott Boca Raton, a 120-room extended-stay hotel in Boca Raton, FL.
David Altman, managing director, investments, and Jeff Halavacs, investment associate, worked in collaboration with Adam Sklaver and Phil Kates of Marcus & Millichap’s Commercial Property Auction Services team.
Responding to competitive momentum, the buyer, an investment group based in Michigan, pre-empted the auction with an offer acceptable to the seller. The group plans to remove the Marriott franchise and convert the property to student housing supporting Florida Atlantic University.
“It’s a great property that was having operational and management issues,” said Altman. “Rate and occupancy were declining, expenses were increasing and Marriott was threatening to pull the flag. The buyer is leaning into Florida’s Live Local Act to give the site a second life as housing for Florida Atlantic University, which is about three miles away. It’s a smart plan for the property and will provide much needed housing for the growing university.”
Sklaver added, “Our collaboration with Altman and Halavacs drew local and national interest in the asset. This was a rare situation where the buyer knew they really wanted the property, didn’t want to wait for the auction to take place and was willing to pay an amount acceptable to the seller on non-contingent auction terms.”
The hotel spans 4.26 acres and comprises 16 two-story buildings with guest suites equipped with full kitchens. Amenities include a fitness center, resort-style swimming pool, basketball courts and complimentary breakfast. The property has undergone significant capital improvements since 2020, including upgrades to stairwells, carpeting, mechanical systems and pool infrastructure. The hotel is adjacent to the I-95 and Congress Avenue interchange, with visibility to more than 225,000 vehicles per day.
