Wednesday, January 8, 2014

Marcus & Millichap Completes Coast-to-Coast Hospitality Sale


Best Western Premier hotel, Bryan, TX

Anita Paryani Rice
BRYAN, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a 100-room Best Western Premier hotel located in Bryan, Texas. The terms of the sale were not disclosed.

            “This transaction highlights Marcus & Millichap’s unique ability to source opportunistic cross-product capital, work collaboratively within our national hotel team and with specialists in other product types, and arrange financing to meet the needs of our clients,” says Gregory LaBerge, National Director of Marcus & Millichap’s National Hospitality Group.

“The new owner of this hotel is a retail property investment firm in a 1031 exchange that ventured into the hospitality sector for the first time.”

            Douglas Cole, an associate, both in Marcus & Millichap’s West Los Angeles office, represented the buyer, a private investment firm based in Hermosa Beach, Calif.

Gregory LaBerge
       Marty Cohan, a vice president investments and Douglas Cole, an associate, both in Marcus & Millichap’s West Los Angeles office, represented the buyer, a private investment firm based in Hermosa Beach, Calif.

            “Our client asked us if it would be possible to sell their downleg property for them and find an upleg that was easier to manage; one that would produce a sustainable and substantial cash flow and that was in a growing and prosperous market area,” says Cohan.

“We fulfilled all of these objectives by arranging the sale of the downleg property, a retail center that hadn’t changed hands in 45 years, and worked with the firm’s hotel specialists to bring in the Best Western Premier to complete the exchange.”


Marty Cohan


            David Greenberg, a vice president investments in Marcus & Millichap’s Fort Lauderdale office, along with Alan Miller, an associate vice president investments in the firm’s San Antonio office and Chris Gomes, a senior associate in Dallas, represented the seller, a private Texas-based investment group.

            “For several years we have been providing advisory services to this seller, the owner/manager of a growing portfolio of Texas hotels, several of which were ground-up development projects,” adds Greenberg.
“Together we decided that 2013 would be the best time for the investment group to meet its required return thresholds by capturing significant equity from the sale of this hotel and moving the proceeds into Texas hotel development projects.”


Douglas Cole

            Anita Paryani Rice and Jake Roberts, both vice presidents capital markets in MMCC’s West Los Angeles office, arranged the acquisition loan for the hotel and refinancing for the retail property.

            The Best Western Premier hotel is located at 1920 Austin’s Colony Parkway in Bryan, Texas, just off Texas State Highway 6 at the FM-158/Boonville Road exit and three miles northeast of Texas A&M University.

The location is within the Bryan-College Station metropolitan statistical area in Brazos Valley, which is also known as “Research Valley” and “The Innovation Capital of Texas.”

            “Given the availability of high quality third-party management companies, along with attractive current and near-term yields in this industry, buyers from other product types continue to look for opportunities in the hospitality sector,” notes Gomes.

Jake Roberts
            “The hotel opened in 2009 and was rebranded as a Best Western Premier,” concludes Greenberg. “Its award-winning hotel management team, the Oldham Goodwin Group, will remain in place.”
With an industry-leading investment team located in more than 35 strategic markets, Marcus & Millichap’s National Hospitality Group sold 99 hospitality assets in 2013.   
      
For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716

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