Chicago - February 1999 - Transcontinental Realty Investors,
Inc. (NYSE: TCI) Tuesday announced the purchase of the Neighborhood Inns
of Chicago from the Wilmont Hotel Limited Partnership for $11.6 million.
A departure from the company's traditional investment in apartments, office
buildings and retail centers, the hotel group represents approximately
3 percent of Transcontinental's assets as of December 31, 1998.
 |
Purchaser: Transcontinental
Realty Investors, Inc. - Dallas, TX
Seller: The Wilmont
Hotel Limited Partnership
Sold by: Mid-South
Hotel Brokers, Memphis, TN |
The Neighborhood Inns consist of three hotels built in 1927 -- the 45-room
Belmont Hotel, the 52-room Brompton Hotel and the 55-room Surf Hotel. All
three are all located in Chicago.
Commenting on the hotel purchase, Randall Paulson, president of Transcontinental
Realty Investors, stated, "In assessing the value of the Neighborhood Inns,
management considered a number of factors. These included the geographic
locations, past financial performance of the properties and the maintenance
and appearance of each structure. We feel the purchase of the Belmont,
the Brompton and the Surf hotels was important to add diversity to the
TCI portfolio, as well as holding significant potential as income producing
properties."
Terms of the single transaction included payment of $2.3 million in
cash and mortgage financing of $9.3 million secured by all three properties.
Transcontinental Realty Investors, Inc. is a real estate investment
trust that owns and operates a diverse property portfolio nationwide. |
