DUBLIN-Locally headquartered investment group Sorrento Asset Management has acquired corporate housing provider BridgeStreet Worldwide from Interstate Hotels & Resorts for $40.5 million. BridgeStreet will act as Sorrento's real estate management division while remaining a US-based company based out of Northern Virginia.

BridgeStreet president Lee Curtis says being a part of Sorrento will "open doors to multiple capital sources, which will allow us to fund our ongoing and future growth plans." Chief executive Bryan Turley says BridgeStreet has operated in a number of its properties in the US and Europe. "The combination into a single organization will translate into significant synergies," Turley says. "We see BridgeStreet…as a catalyst for strategic growth."

The acquisition follows a "major turn-around program" implemented by BridgeStreet over the past few years, Turley says. "[They] have re-energized the company by concentrating on high potential, tier-one markets, by increasing revenues and profitability and through significantly expanding their global accounts," he says. "We foresee significant upside growth potential."

Interstate Hotels chief executive Thomas Hewitt acknowledged the turnaround, saying the company has done an excellent job of managing its existing corporate apartment inventory and driving rates, resulting in significantly increased profits. "However, corporate housing, while related, is no longer part of our core growth strategy," he said.

Credit Suisse provided acquisition financing. Cantor Fitzgerald and DLA Piper acted as financial and legal advisor to Sorrento, respectively.