HREC Closes Two Transactions in One Week
DENVER, CO, August 12, 2009 - The Denver based HREC Investment Advisors brokerage team of Larry Kaplan, Senior Vice President and Mark Darrington, Vice President recently closed on two hotel sales in one week, illustrating that transaction activity appears to be growing for hotels under $10 million.
The Best Western in Appleton, Wisconsin and the AmericInn in McCall, Idaho are HREC's two recent hotel sales. "The Best Western in Appleton was sold by Midway Motor Lodge, the hotels original developer. HREC Investment Advisors sourced an out of state buyer for the property, and also assisted in sourcing acquisition financing for the buyer through a Florida lender. This is the second transaction in two years that HREC has completed for Midway Motor Lodge. We continue to see a strong pool of potential buyers for hotels that are reasonably priced and under $10 million," said Mark Darrington.
Regarding the AmericInn in McCall, Idaho, Larry Kaplan said, "This was an extremely unique transaction in which we worked with both the original developer, existing first mortgage holder and the SBA to negotiate a win-win scenario that was effectively a discounted note pay off. The hotel is a distressed asset with low revenue and negative operating cash flow. Our database of national hotel buyers includes a number of opportunistic investors looking for distressed opportunities. We were able to quickly secure multiple offers for this hotel, and in conjunction with the existing owner and lender, selected the most qualified group to reposition the property."
Mark Darrington concluded, "In this challenging hotel transaction and operations environment, we continue to offer our clients creative and energetic solutions. Our industry experience and problem solving approach allows us to act as an advisor to multiple parties for the benefit of the transaction. With the challenge of sourcing debt and equity in this economy, we find ourselves being asked more frequently to find non-traditional solutions to our client's situations."
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