Built in 1924 and located in Downtown Seattle, the 450-room hotel features two restaurants and two lounges, an indoor pool and fitness center, high-speed Internet access in all guestrooms and 20,000 sf of meeting and event space. Four Seasons Hotels Inc. has managed the Downtown hotel for the past 21 years. As part of the acquisition, Legacy is handing the long-term management contract to its affiliate, Fairmont Hotels & Resorts, for an unspecified payment.

Legacy CFO Jerry Patava tells GlobeSt.com says the assumed mortgage is at current interest rates, but adds that the low loan-to-value ratio (41.9%) gives the company the option of a cash-out refinancing. Patava says the current capitalization rate on the investment is "in the high single digits."

Legacy owns 22 luxury and first-class hotels in Canada, including the Empress in Victoria, B.C. The Olympic acquisition gives Legacy two hotels in the US. Legacy last year acquired the 415-room Monarch Hotel in Washington, DC for $145 million.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.