GREENWICH, Conn.-September 18, 2012--Wheelock Street Capital announced today that affiliates of Wheelock Street Capital have acquired a 12 asset select service hotel portfolio from affiliates of Inland American Real Estate Trust, Inc., and, in an unrelated transaction, a 3 asset full service hotel portfolio from affiliates of Sunstone Hotel Investors, Inc. for a combined value of $221 million.
On September 13th, affiliates of Wheelock Street Capital acquired a 12
asset select service hotel portfolio from affiliates of Inland American
Real Estate Trust, Inc. for total consideration of approximately $116
million. Financing for the transaction was provided by a combination of
assumed CMBS loans and newly originated senior financing provided by GE
Capital, Franchise Finance. The portfolio is located primarily in the
Southeast and Texas, with additional assets located in Illinois and
Arizona. 10 of the 12 hotels are branded under long term license
agreements with select service and extended stay brand affiliates of
Hilton and Marriott, with the remaining 2 hotels licensed by affiliates
of Choice Hotels and InterContinental. The portfolio will be managed by
McKibbon Hotel Management and the North Central Group.
Separately, on September 14th, affiliates of Wheelock Street Capital
acquired three full service assets from affiliates of Sunstone Hotel
Investors for a gross purchase price of $105 million. Wheelock Street
assumed the properties’ existing CMBS financing. The portfolio includes
the 257-room San Diego Hilton Del Mar, the 229-room Minneapolis
DoubleTree Guest Suites and the 350-room Detroit Marriott Troy. Sage
Hospitality will manage the San Diego Hilton Del Mar and Minneapolis
DoubleTree Guests Suites while Marriott International continues to
manage the Detroit Marriott Troy. Wheelock anticipates completing the
ongoing renovation at the Hilton Del Mar and investing in select
property upgrades at the Marriott Troy and Minneapolis DoubleTree.
Commenting on the transactions, Jonathan Paul, a Managing Partner of
Wheelock Street Capital, said, “We are delighted to be adding this
collection of high quality hotels to our portfolio. Wheelock will
invest in additional capital upgrades across both portfolios to
position the assets to benefit from a favorable fundamental backdrop
and high quality brand affiliations.”
CBRE and Maxim Hotel Brokerage represented Inland in the sale of the
select service portfolio. Hodges Ward Elliott represented Sunstone in
the sale of the full service portfolio.
About Wheelock Street Captial
Wheelock was formed in 2008 by Rick Kleeman and Jonathan
Paul, two veteran real estate private equity investors, each with over
20 years of broad real estate transaction experience across all major
asset classes. Wheelock is currently investing its third fund and its
first multi-investor discretionary opportunity fund, which consists of
$525mm of committed capital. Wheelock’s first two funds were primarily
funded by a single private institutional investor. Wheelock will invest
in a broad range of real estate assets throughout the United States.
The fund may invest directly or with high quality joint venture
partners through a variety of capital structures and transaction types,
including acquisitions, restructurings, and recapitalizations.
For further information regarding Wheelock Street Capital, please refer
to the company website at www.wheelockst.com.