"There's no place more idyllic than Nantucket," says Garrity,adding that the island's location as a haven for summer visitorscombined with a decline in the number of available rental unitsmade the properties a key acquisition. In the last 10 years,Nantucket's lodging stock has declined 23% as buyers gobbled upinns and bed and breakfasts to turn them into private homes,Garrity says. In the last year alone, 96 rooms were lost to privateownership.

"By virtue of it being an island there are supply constraintsand with three strong conservation entities on Nantucket that areaggressive in placing land in conservation, from a lodgingperspective you have great fundamentals," he notes. "Although [CapeCod, Martha's Vineyard] and Boston have very sound fundamentals,the fundamentals as they relate to Nantucket were just overlycompelling."

Garrity says the group plans a long-term hold for the fourproperties, which also includes about 3,500 sf of retail spacealong Nantucket's main street, and will continue to operate them aslodging facilities. The island has drawn increased interest frominvestors in recent months as the island's summer season nears.Earlier this month, Newton real estate developer Stephen Karpoffered $55 million for a portfolio of at least 48 retailproperties in a deal that will make him one of the largest ownersof commercial real estate on the island. The pending deal would puthalf of the island's commercial properties in the hands of Karp'sNantucket Island Resorts LLC and expand Karp's holdings on theisland to 78,000 sf.

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