ALEXANDRIA, VA—We have been tracking the pending sale of the Hilton Alexandria OldTown by LaSalle Hotel Properties sincethe beginning of the year. It is official now and the seller,LaSalle Hotel Properties, has provided some metrics behind thesale.
As noted previous the 246-key hotel traded for $93.4 million.CEO Michael D. Barnello reported Wednesday morningthat for the 10 plus years the REIT held the hotel the assetdelivered an unleveraged IRR of 13.5%. "The HiltonAlexandria Old Town was a wonderful long term investment for us,"he says in a prepared statement.
Proceeds from the transaction will be used to reduce borrowingson the REIT's senior unsecured credit facility and redeem theremaining $58.7 million of 7.25 percent Series G preferred shares.The preferred share redemption will close on July 3, 2014.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
