According to Gilbert, JER acquired the site at a significant discount to replacement value. "We think replacement value would be $140,000 to $150,000 per key," he says. The firm paid roughly $69,300 per key.
The hotel, which was acquired at a 10% cap rate, recently underwent a $5.4 million renovation of guest rooms, lobby and common areas. It boasts 28,399 sf of meeting space and an 11,360-sf ballroom.
JER Partners expects the hotel to benefit from its position as the only full-service hotel in College Station, which is home to Texas A&M University. "We like the demographics and the economics of a college town," Gilbert says. The hotel is located one mile from the University at 801 University Dr. East.
For 2004, the hotel boasted an average room rate of $94 and occupancy of 70% for a RevPAR of 66. JER obtained property level financing from Wells Fargo Bank, Gilbert says.
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