|By Carol Hazard, Richmond Times-Dispatch,
Va.McClatchy-Tribune Regional News
Feb. 03, 2012--Henrico County-based StreamCo LLC, a fast-growing company specializing in commercial real estate asset management services, said Thursday that it has acquired Afton Hospitality, a Virginia Beach-based hotel management and consulting firm.
With this acquisition, StreamCo's portfolio of commercial real estate under management expanded from 4 million square feet in 18 states to 6.5 million square feet in 22 states. Terms of the deal were not disclosed.
Afton developed, owned and managed more than 40 hotels in the mid-Atlantic, including those using the Marriott, Starwood, InterContinental, Hilton, Wyndham and Choice hotel banners.
Afton, within a two-year period, grew to provide lender-related consulting and receivership services to about 20 hospitality properties in 15 states.
With the acquisition, all of Afton's contracts were conveyed to StreamCo. The Afton name was changed to Commonwealth Lodging LLC, which will be in charge of hotel property management and the day-to-day operations.
StreamCo will handle asset management -- overseeing the entire operation from leasing to lender compliance and property management -- for the hotels as it does for its retail, office, industrial and multi-family clients.
"StreamCo has been looking to add the hospitality service side to our already successful real estate management service business model," said Mark W. Claud, president of StreamCo and its parent company, Commonwealth Commercial Partners.
"Afton demonstrated rapid growth over the past two years and caught our eye as an entrepreneurial firm with immense potential."
Claud said the acquisition talks began about a year ago.
StreamCo's acquisition of Afton is unusual because few full-service real estate asset management companies have the hospitality component in their company skill set, said Kenneth S. Strickler, managing director and partner at StreamCo.
"Some third-party asset managers only do hotels, and some only do commercial properties," he said. "It's rare to see a firm that does all that."
StreamCo is looking at expanding beyond its current 22-state market with quality hospitality properties now represented in its portfolio, Strickler said.
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