Recent transactions include Park-Equities completing the sale of the Mining Exchange Hotel, a Wyndham Grand Hotel & Spa; Avistone acquiring the Courtyard Dulles Airport Herndon; Sotherly Hotels closing on the sale of the DoubleTree by Hilton Raleigh Brownstone in North Carolina; and Sonnenblick-Eichner Company advising on the placement of $35 million of first mortgage interim financing for the Moxy Oakland Downtown.
Park-Equities completes sale of Mining Exchange Hotel
Park-Equities has completed the sale of the 117-unit Mining Exchange Hotel, a Wyndham Grand Hotel & Spa in Colorado Springs, CO. Taylor Grant with the firm represented sellers, attorney Perry Sanders and John Goede, and procured family-run buyer, Kemmons Wilson.
The Mining Exchange was opened in 1901 as a stock exchange for mining corporations, later becoming an office building before Sanders gutted it to the brick and granite and transformed it into a boutique hotel.
“We managed to preserve one of the coolest historic buildings that’s ever been built in this city,” Sanders said. “When so many buildings have been torn down, we really took this back to its core, and preserved everything in it that could be preserved.”
The property features a brass staircase, massive safes left over from the mining exchange, 12-ft. ceilings, solid-core privacy doors, separate sleeping areas, granite-topped desks, double-headed bathroom showers, recording studio-quality walls to prevent noise between rooms, 10,000 sq. ft. of event space, a lobby bar, spa and private courtyard.
Grant introduced Kemmons Wilson—which had some familiarity with the property from visiting years prior—to the deal. Sanders and partner Goede initially had no intention to sell. “Perry transformed The Mining Exchange into an iconic, irreplaceable asset,” said Grant. “Although I am not at liberty to disclose price, I can confidently say this is the highest per-room hotel sale recorded in the history of Colorado Springs.”
The transaction was done in conjunction with Colorado broker JDS Real Estate Services Inc.
Avistone acquires Courtyard Dulles Airport Herndon
Avistone has acquired the 187-room Courtyard Dulles Airport Herndon in Herndon, VA.
“This Courtyard by Marriott hotel marks our first acquisition in Virginia,” said Dan Culler, CEO, Avistone. “ This market growth allows us to keep pace with the expansion of Dulles International Airport and the technical epicenter surrounding our nation’s capital. We are looking to continued growth in the hotel sector with additional acquisitions either on our own or in partnership with others.”
The pet-friendly hotel offers a 24/7 business center, a fitness center and meeting space to accommodate up to 40 people, as well as The Bistro, an on-site restaurant that serves breakfast and dinner.
Sotherly Hotels closes on sale of Raleigh, NC, DoubleTree
Sotherly Hotels Inc. has closed on the sale of the DoubleTree by Hilton Raleigh Brownstone in Raleigh, NC, for $42 million. A portion of the proceeds from the sale was used to repay the first mortgage and repay a majority of the Kemmons Wilson secured note. The remaining proceeds will be used to make any required distribution on the company’s preferred stock related to maintaining its REIT status and for general corporate purposes.
“We are extremely pleased to complete the sale of the DoubleTree by Hilton Raleigh Brownstone,”said Dave Folsom, CEO, Sotherly. “The $42-million above-market price equaled approximately a 14.0x EBITDA multiple and a 6.2% cap rate on 2019 results. The sale represents a transformative event for the company, as it significantly reduces mortgage debt and repays expensive corporate leverage, while simultaneously removing near-term CapEx required for life-cycle improvements at the hotel. These events are all major milestones in restructuring our balance sheet, as our portfolio continues its recovery from the pandemic. Further, in making these important balance sheet improvements, and by removing significant near-term capital outlays, the company can focus on additional post-COVID efforts, including its accrued and unpaid preferred dividends. The completion of this transaction brings renewed optimism for Sotherly, and we look forward to the ongoing lodging recovery, its effect on our business, and improvements to the health of our balance sheet.”
Sonnenblick-Eichner advises on financing for Moxy Oakland Downtown
Sonnenblick-Eichner Company was the exclusive advisor to the borrower for the placement of $35 million of first mortgage interim financing for the leasehold interest in the Moxy Oakland Downtown, a 172-room hotel located in the Uptown Arts and Entertainment District of Oakland, CA. The financing was provided by ACORE Capital.
The hotel opened in March of 2021. Proceeds from this non-recourse financing were used to retire the construction loan and provide fresh capital to advance the hotel toward stabilization. The property was developed by Tidewater Capital and Graves Hospitality and is managed by Graves Hospitality. Graves and Tidewater own the property in partnership with EJF Capital.
Amenities at the hotel include a lobby bar, lounge, an outdoor terrace, a full-service restaurant and a 24-hour fitness center.