NEW YORK CITY—NorthStar Realty Finance,headquartered here, and Chatham Lodging Trust haveentered a $1.3-billion joint venture on the 51-propertyInnkeepers portfolio, the twoREITs announced Friday as part of their respectivequarterly earnings reports. Headquartered in Palm Beach, FL,Chatham and its previous JV partner, Cerberus CapitalManagement, put the portfolio up for sale this past January.
Under terms of the new JV, NorthStar and Chatham will pair up onownership of 47 of the 51 upscale extended-stay and select-serviceproperties, totaling about 6,100 keys mainly on the East and Westcoasts and mainly affiliated with Marriott or Hilton brands. The89.7/10.3 JV is valued at $958.5 million, with NorthStar acquiringCerberus' stake.
Chatham is paying $341.5 million for the remainder, a quartet ofResidence Inn hotels in Silicon Valley that total 750 rooms, andplans to redevelop them. Inland Hospitality willcontinue managing the entire Innkeepers portfolio, as it did underthe Chatham/Cerberus JV.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
