The RADCO Companies has acquired Aloft Lawrenceville Sugarloaf in Lawrenceville, GA, a newly developed, five-story, 112-key hotel located off I-85, one of the nation’s busiest interstates. Additional terms of the deal were not disclosed.
Monty Levy and Ketan Patel of Hospitality Real Estate Counselors (HREC) brokered the sale. The property, which opened just three weeks ago, will be managed by Hospitality Ventures Management Group (HVMG).
Located in the Northeast Atlanta submarket, Aloft Sugarloaf has a pool, fitness center and 24-hour business center. In addition, the new turn-key property features the brand’s signature WXYZ Bar and Re:fuel Café.
The deal marks the 10th acquisition by RADCO’s new hotel division, launched in early 2021 in response to the COVID-19 pandemic’s operational and capital markets disruptions in the hospitality sector. RADCO is actively seeking out hospitality assets that are in line with the company’s overall opportunistic investment strategy, according to CEO Norman Radow.
“Acquiring this brand new Aloft in an incredible location in Gwinnett County continues our strategy to expand our mid-market hotel footprint,” Radow said. “As our 10th hotel acquisition, the Aloft has special meaning for our company. It’s also our third hotel partnering with HVMG, which is managing two other hotels for us on the north side of Atlanta. We hope to add more hotels later this year and in 2023.”
The RADCO Companies has a 28-year history of acquiring and investing in opportunistic real estate across all asset classes. The firm recently reentered the hospitality market with the acquisitions of three hotels in the Atlanta market and six Florida properties in the Panhandle and St. Petersburg totaling more than 1,150 rooms. According to the company, its investment strategy targets underperforming assets that offer immediate mark-to-market opportunities and assets requiring capital infusion to add value. It also seeks out well-located assets that have limited access to institutional debt or equity capital for a variety of reasons.
“RADCO continues to find ways to deploy capital into the hospitality industry in what has proven to be a challenging time in the industry, with a volatile debt market and rising inflation,” said Bhavnesh Vivek, VP, hotel acquisitions.
Acquired at a basis below today’s replacement cost, RADCO was particularly attracted to the property’s Marriott brand affiliation in a submarket that has seen tremendous growth, with more coming with the mixed-use development of the Gas South District.