Brokers aren't discussing what the Plymouth, MN-based Carlsonrealized from the quiet trade of the 6.1-acre asset at 1981 N.Central Expwy. Austin-based Source Strategies Inc.'s vice presidentDoug Sutton says to build a comparable full-service hotel that itwould cost $110,000 to $120,000 per key, excluding land costs.Dallas Central Appraisal District has the hotel assessed at $15.6million or $53,388 per room. Given the deal's dynamics, it's a safebet that HM-NM Inc., led by Al Mori of Dallas, paid at least$60,000 per room for the deed.

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CB Richard Ellis first vice president Bert Stevens and vicepresident Bidjaan Kassam brokered the sale. Stevens tellsGlobeSt.com that Carlson hadn't tagged the asset as non-core, buttwo other Radisson-flagged hotel sales in the market showed enoughdemand that the seven-year owner was convinced to sell. But, headds marketing was done "on a very confidential basis."

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In 2006, Mori, the investment group's vice president, bought a220-room Holiday Inn Select at 1655 N. Central Expressway, aboutone mile from the Radisson. "He was an ideal candidate," Kassamexplains. As part of the new pickup, Mori signed a new long-termfranchise agreement to keep the Radisson flag in place.

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Built in 1982, the hotel opened as a Hilton, swung to a Clarionand then became a Radisson under Carlson's reign. According toSutton, the hotel has is leading competitors in its zip code, oneof three in Richardson that Source Strategies uses to monitor themarket. He calculates the Radisson's RevPAR at $59.90 versus the$49 average of its immediate competitors.

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"The Radisson is the best performing hotel in its zip code,"Sutton explains, "but that's not in all of Richardson." In aneighboring zip code, the leaders are ringing up $58.24 and $63.77in RevPAR so it's a good sign that there's upside to be gained forMori's plan to renovate his newest prize.

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The Radisson's immediate competitors also are of the samevintage so the upcoming renovation of all guest rooms, lobby andcommon areas like the 12,000 sf of meeting space most likely willgive the new owner some added leverage in the submarket. At the endof third quarter 2007, the Radisson's average daily room rate is$90.38 and its trailing 12-month occupancy was 66.3%, according toSource Strategies.

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