The Siegel Group, a real estate investment and management company, has sold four extended-stay properties in an off-market transaction for $184.5 million at a blended per unit cost of approximately $167,400. Each property was operated under the company’s Siegel Suites brand. The assets were sold unencumbered of the brand.
The properties sold included two assets in the Las Vegas market totaling approximately 400 units and another two locations in the Phoenix market (Siegal Suites Phoenix pictured above) totaling just over 700 units. At the time of sale, the occupancy at each property was in the mid-90s. The company plans to redeploy some of the funds from the sale towards the acquisition of eight extended-stay properties in various parts of the country and 10 acres of development land on the Las Vegas Strip, which are all currently under contract to close in the second quarter.
“We rarely sell properties but the offers we received were extremely appealing and made the decision easy,” said Stephen Siegel, president, The Siegel Group. “While we are long-term holders, we will from time to time dispose of assets if the pricing and timing is right.”