Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 5A


Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 5A


ARC Hospitality to commence monthly distributions on April 5, 2014 $101.5 million: ARC Hospitality completes acquisition of first six hotels

B ALTIMORE, MD — American Real ty Capital Hospitality Trust, Inc. (“ARC Hospital- ity”) announced that it closed on the acquisition of interests in six hotels on March 21, 2014, marking ARC Hospital- ity’s first property acquisitions. ARC Hospitality acquired the fee simple interests in the Courtyard® Inner Harbor Hotel in Baltimore, MD, the Courtyard® Providence Down- town Hotel in Providence, RI, and the Homewood Suites® in Stratford, CT, as well as a leasehold interest in the Geor- gia Tech Hotel & Conference Center in midtown Atlanta, GA, for an aggregate purchase price of $101.5 million, exclu- sive of closing costs. Addition- ally, ARC Hospitality has ac- quired joint venture interests in The Hilton Garden Inn® in Blacksburg, VA, and the Westin Virginia Beach Town Center in Virginia Beach, VA, for an aggregate purchase WASHINGTON, DC — HFF announced that it has closed the $79 million sale of The Army and Navy Club Building, a 108,000 s/f, class A office property located on the northeast corner of 17th and Eye Streets, NW over- looking Farragut Square in the heart of the Central Business District (“CBD”) of Washington, DC. HFF exclusively repre- sented the seller, Beacon Capital Partners , in the transaction. Washington Real Estate Investment Trust (WRIT) purchased the property for $79 million contingent to existing debt. The HFF investment sales team representing the seller was led by executive man- aging director Stephen Conley , senior managing directors Jim Meisel , Dek Potts and Andrew Weir , and associate director Matt Nicholson . 

tourist attractions, airports, retail centers or convention centers. The six hotels are managed by American Realty Capital Hospitality Properties, LLC and Crestline Hotels & Resorts, LLC , ARC Hospital- ity’s property manager and sub-property manager. William M. Kahane , chief executive officer and president of ARC Hospitality, comment- ed, “The purchase of these six assets marks our first acqui- sition and is representative of the durable income assets we intend to purchase. The portfolio includes branded hotels franchised by Hilton Worldwide, Marriott Interna- tional and Starwood Hotels & Resorts located in strong markets with embedded mar- ket demand generators. As the U.S. economy continues to improve, we fully expect the hospitality sector to benefit from GDP growth.” Jonathan P. Mehlman , chief investment officer of ARC

Hospitality, added, “Each of these hotels is the leader in its respective market from an average daily rate, occupancy and Revenue Per Available Room perspective. We are very excited to have procured this high quality hotel portfolio in an off-market transaction and at a price which is at a discount to current replacement cost.” Additionally, pursuant to authorization from its board of directors, ARC Hospitality declared a distribution rate, which will be calculated based on stockholders of record each day during the applicable peri- od at a rate of $0.00465753425 per day, based on a per share price of $25.00. The distribu- tions will begin to accrue on April 1, 2014, and will be payable by May 5, 2014. Go- ing forward, distributions will be payable by the fifth day following each month-end to stockholders of record at the close of business each day dur- ing the prior month. 

Georgia Tech Hotel Exterior

price of $5.0 million, exclusive of closing costs. The hotels contain 1,181 rooms and approximately 38,960 s/f of meeting space. Each of the hotels is a globally branded select-service or full- service hotel, or, in the case of the Georgia Tech Hotel &

Conference Center, a hotel and conference center affiliated and owned by the endowment of the university. All of the ho- tels are located near “demand generators” such as corporate headquarters, colleges or uni- versities, state capitals or gov- ernment agencies, hospitals,

Marcus &Millichap arranges the $5.191m sale of 2Wendy’s

HFF closes $79 million sale of The Army and Navy Club Building

liability companies, were se- cured and represented by Nathan Pealer. The properties were sold subject to brand-new 20 year net leases. “Investor demand for this type of property contin- ues to be very high because of a lack of available properties that have long-term leases with great tenants at great locations,” said Nathan Pealer. “We were able to close these transactions at over 96% of the asking price and both transac- tions settled within 80 days of the beginning of our market- ing efforts.” 

CAPITOL HEIGHTS MD — Marcus &Millichap Real Estate Investment Services has announced the sale of two Wendy’s properties located in Capitol Heights and Leonard- town, MD, according to Bryn D. Merrey , regional manager of the firm’s Washington, DC office. The two properties sold for $5,191,000 combined. Nathan Pealer , senior associate in Marcus & Millic- hap’s Washington, DC office, had the listing to market the properties on behalf of the seller, a franchisee of Wendy’s. The purchasers, both limited

The Army and Navy Club Building

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