The 2501 E. Van Buren St. property was on the market 10 months. "We actually received quite a few offers for this property. There was some pretty good activity on it," says Jeff Cunningham, an associate with CB Richard Ellis Inc. in Phoenix, who represented the seller, Yucaipa, CA-based A&F Wilson. Nilesh Patel, a principal in the investment group, received the nod because "he had the best price and had the ability to close," Cunningham tells GlobeSt.com.

Cunningham says occupancy overall tends to be high, but the average daily room rate is just $20 to $25. "This property has been more transitional housing than a typical hotel," he explains, "so while the occupancy was always very high, the charge was consistently low."

The hotel was built in 1961 and renovated in 1994. Its new owner will take it one step further by dividing the buildings into three smaller hotels and refreshing the overall property.

"The unique aspect about this property is that it's bifurcated by 25th and Monroe and sits on different parcels of land," Cunningham says, adding the thought process of the seller was simply to spend time accumulating property and adding it to the hotel. "The goal of the buyer is that, the property might work better as several smaller hotels than one larger one." The renovation cost is still being fine-tuned.