Development of a 203-room Hilton Garden Inn in Sugar Land, Texas
|Baltimore, MD (April 26, 2007) - Alex. Brown Realty, Inc. (ABR), a
national real estate investment company, has entered into a joint venture
with Presidian Companies (Presidian) to develop a 203-room Hilton Garden
Inn in Sugar Land, Texas. Sugar Land is located approximately
20 miles southwest of Houston in Fort Bend County. ABR Chesapeake
Fund III, a value-added real estate investment fund sponsored by ABR, provided
an equity investment of more than $3.6 million to the venture. Equity
capital, the construction loan, and permanent debt were arranged by Gary
Dunkum of Live Oak Capital.
The hotel will be developed by ABR and Presidian as part of Phase I of the planned Crossing at Telfair, a 110-acre mixed use project located at the intersection of State Highway 6 and US Highway 90A, one mile north of the Sugar Land Town Center and adjacent to the 2,018 acre master-planned Telfair residential community. In addition to the hotel, Crossing at Telfair will feature 500,000 square feet of upscale office, medical office, retail, and restaurant space designed in a “new urbanist” pedestrian-friendly environment.
Construction of the hotel is expected to begin in May 2007 and an opening is planned for late spring 2008. Upon completion, the hotel will feature 203 rooms, 7,000 square feet of meeting space, an outdoor pool, a fitness center, and a restaurant and bar. The hotel’s exterior and interior finishes will exceed the standards set for the Hilton Garden Inn “brand” (Hilton’s upper mid-priced, focused-service hotel product), giving the hotel the look and feel of a full-service hotel.
“From an investment standpoint, the location and timing of this hotel development are very appealing,” commented Tom Burton, ABR’s chief investment officer. “First, the Fort Bend County and Sugar Land markets have experienced strong population, job, and personal income growth – all of which drive the demand for hotel rooms. Second, we anticipate limited new hotel construction in the market due to rising land prices and construction costs. This combination of market growth and limited new supply should produce a strong return on our investment.”
This is the second joint venture between ABR and Presidian. “We look forward to expanding our relationship with Presidian,” commented John Prugh, ABR’s president and chief executive officer. “As real estate capital remains plentiful, it is important to maintain relationships with quality joint venture partners to ensure quality deal flow.”
Alex. Brown Realty, Inc. (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Presidian Companies is a San Antonio-based commercial real estate investment, development, and management firm with operations throughout the southwest and central regions of the United States. It succeeds the Leddy Company, which was founded by Mr. H. Drake Leddy in 1989. During its 17-year history, The Leddy Co. and Presidian Companies have developed more than $1 billion in hospitality, entertainment and mixed use projects. www.presidian.com
Live Oak Capital, Ltd. is a full-service commercial real estate mortgage-banking firm specializing in debt and equity placement as well as loan servicing for the commercial real estate industry. www.liveoakcapital.net
|Also See:||Developer Drake Leddy Wants to Build Two Hotels, an aloft and an element, in Leawood, Kansas / December 2006|
|Kimberly-Clark and Leddy Ventures, Ltd Complete $70 million Redevelopment of Houston’s Historic Humble Oil Building with the Opening of a 191-room Courtyard by Marriott and 171-suite Residence Inn by Marriott / July 2003|
|The $54 million Sugar Land Marriott Town Square Topped Off; Hotel is a Public-private Partnership Between Crestline, Stormont Hospitality Group and the City of Sugar Land, Texas / Nov 2002|