Harrisonburg, Emporia and South Hill, VA—Vancouver-based American Hotel Income Properties REIT has closed on a four-asset hotel portfolio located in these markets for $37.1 million.

The portfolio consists of 403 keys in three Hampton Inn hotels and one Fairfield Inn & Suites hotel. They are all located near transportation hubs or other high-traffic areas such as James Madison University or manufacturing facilities or distribution operations or medical centers. The REIT did not announce the seller but according to public records it was Beck Cos.

The purchase price included $1.6 million for defeasance of existing debt, and did not include a $6 million restricted cash reserve established by the REIT for property improvement plans. AHIP funded this transaction via a combination of cash from a market offering and new CMBS financing.

The properties cater primarily to corporate travelers seeking select-service lodging.

According to public records, they include the Fairfield Inn & Suites South Hill, the Hampton Inn – South in Harrisonburg, the Hampton Inn – University, also in Harrisonburg, and the Hampton Inn Emporia.

The properties fit the company's investment mandate of targeting transportation-oriented and select and limited-service hotels in US secondary markets, says AHIP's CEO, Robert O'Neill, in a prepared statement. He also notes that the 10-year CMBS financing came in at a fixed 4.97%.

In November 2013 AHIP acquired another four-asset portfolio in Pennsylvania. The four properties-Hampton Inn Pittsburgh Airport, Hampton Inn Pittsburgh Greentree, Residence Inn Pittsburgh Cranberry and Hampton Inn Cranberry Township Pittsburgh-traded for approximately $57.3 million.

In February 2013 it acquired a 32-property portfolio. The 2,505-key portfolio traded for $130.4 million.