News for the Hospitality Executive
January 17, 2012 - (Leawood, Ks) - Leisure Real Estate Advisors, LLC, is pleased to announce the successful sale of three more REO hotels, all of which were owned by regional banks. Leisure Real Estate Advisors represented the Owner, CB&T ORE Holding III, LLC, in the first transaction, the Microtel Inn & Suites, Independence, KS. Laximarayan, LLC purchased the 69 unit property for an undisclosed amount. The listing price was $2,100,000. “Completing a sale on any distressed asset always presents challenges, however, these three closings represented transactions that followed a relatively smooth deal path”, comments Brent Jaynes, co-founder and managing partner of Leisure Real Estate Advisors. Rick Hagerman, a Senior Investment Advisor in the Kansas City office was in charge of due diligence and the closing. “This hotel, although bank owned, was recovering nicely and created a positive situation for both parties. No distressed deal is simple these days and both parties and the new lender worked diligently in order to achieve this closing”, said Mr. Hagerman.
The second transaction involved the Suburban Lodge in Lenexa, KS. The 118 unit extended stay hotel was owned by Corporate Holdings II, LLC, an REO subsidiary of a local bank, and was also represented by Leisure Real Estate Advisors. The buyer was Bright, LLC, a New York investment group, and they will retain the Suburban Lodge flag. “Unfortunately for the former owners, this 2 ½ year old hotel was opened in the height of the recession and faced serious competition. It was just not able to get over the hump”, says Jaynes. The sales price was not disclosed, but the listing price was $3,300,000. “The original mortgage on the Suburban was over $5.5 million. Therefore, the listing price was a direct indicator of the economic distress experienced by the hotel”, comments Jaynes.
The third sale was another Suburban Lodge located in the downtown area of Lincoln, NE. As with the other two transactions, the hotel was owned by the REO division of a local savings bank. The buyer was Ambay, Inc consisting of a group of local hoteliers. Mike Works, Senior Broker Associate out of the Lincoln, NE office represented the bank. “The 52 unit all-suite property was converted to the Suburban flag in 2008 and is a very nice hotel. For some reason, it was not able to penetrate the extended stay market. Downtown Lincoln as regained its strength and the new owner should be able to benefit from the local resurgence and numerous demand generators in the area”, comments Mr. Works. “It was listed for $1,175,000 and the brought a sale price very close to the asking”.
Leisure Real Estate Advisors, LLC is based in metro Kansas City and has a specialty concentration in the marketing and sale of hotels. Over its 12 year existence, the company has become one of the premier hotel brokerage firms in the country. Mr. Jaynes further remarked, "Although this market presents its challenges, we are still seeing a good deal of activity, which is quite encouraging. If the fundamentals of the industry continue to improve, activity will increase and more deals will get done."
For more information on these sales or to discuss the investment market in general, please direct your questions any of the brokers or to:
Brent A. Jaynes
Leisure Group of Companies
4501 College Blvd Suite 275
Leawood, Kansas 66211
Phone - 913-905-1460
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