Partnership Between Three Wall Capital and Guggenheim Investments Completes Acquisition of 18-Asset Extended Stay Hotel Portfolio

/Partnership Between Three Wall Capital and Guggenheim Investments Completes Acquisition of 18-Asset Extended Stay Hotel Portfolio

Partnership Between Three Wall Capital and Guggenheim Investments Completes Acquisition of 18-Asset Extended Stay Hotel Portfolio

|2019-10-23T15:47:08-05:00October 22nd, 2019|

NEW YORK — October 22, 2019 — A partnership between Three Wall Capital and Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, completed the acquisition of an 18-asset extended stay hotel portfolio. Clients managed by Guggenheim Investments also provided the mortgage debt for the portfolio acquisition.

The national portfolio includes hotels located in North Carolina, Virginia, Florida, Texas, Tennessee, and Georgia, and the assets are affiliated with brands in the Hilton, IHG, and Choice systems. The hotels are all well positioned in their respective markets and are proximate to dense retail corridors, office parks, hospitals, airports, residential communities, and major highway systems.

The acquisition will build on Three Wall’s rapidly expanding portfolio and aligns well with the firm’s extended stay focus. Alan Kanders, Managing Member and Founder of Three Wall Capital, remarked, “The portfolio’s geographic diversity, high-quality physical product, strong in-place cash flow, and valuable real estate made it an all-around attractive investment opportunity for us.” The portfolio includes assets flagged as Homewood Suites, Home2 Suites, Candlewood Suites, Staybridge Suites, Suburban Extended Stay, Mainstay Suites, and Sleep Inn. New long-term franchise agreements were secured from all brands. “This acquisition complements our existing portfolio and aligns with our goals for future growth,” Mr. Kanders explained. Three Wall’s portfolio consists of 54 hotels following the close of this acquisition, 46 of which represent extended stay hotels.

Aimbridge Hospitality, the nation’s largest independent hotel management firm, has been retained as the operator, further strengthening their strategic partnership with Three Wall Capital.

The JLL Capital Markets team* led by Managing Director Chris Dewey represented the seller in the transaction.

“This diverse portfolio, consisting of extended stay hotels across multiple class segments, provides significant in-place cash flow in strong southeastern growth markets,” Dewey said. “The hotels have been recently renovated positioning the portfolio to continue capturing more than its fair share of room night demand in markets that continue to expand.”

About Three Wall Capital

Founded in 2008 by Alan Kanders, Three Wall Capital has completed over $1.0 billion in transactions in a principal investor capacity since inception. TWC invests with the philosophy that hotel real estate is subject to both short and long term cycles, and therefore, opportunistically invests in product type ranging from limited service to luxury hotels. TWC’s current investment strategy is to acquire and develop mid-scale extended stay hotels in markets with strong growth outlooks in terms of population, disposable income, jobs, diversity of high-quality food and beverage experiences, retail offerings, and office space. For further information and more details on TWC’s portfolio, visit www.threewallcapital.com.

 

Contact: Michael Mao

[email protected]/(646) 560-1728

About Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with expertise in fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our team of investment professionals performs rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL vision’s is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, JLL will build a better tomorrow for its clients, its people and its communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

* Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.

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