Chicago Investment Firm Acquires Second Downtown Tampa Hotel
The sale price more than likely is north of $100 million since CrossHarbour acquired the property in 2016 for $101 million and since then undertook a multi-million-dollar capital improvement plan at the hotel that was completed in 2017.
TAMPA—Walton Street Capital, which acquired the Westin Tampa Harbour Island hotel in the summer of 2016, has added another Downtown Tampa hotel to its portfolio—the 520-room Hilton Tampa Downtown.
Boston-based CrossHarbor Capital Partners LLC sold the full-service hotel, which was built in 1982, for an undisclosed price to Walton Street Capital, which is headquartered in Chicago. Brokerage firm Holliday Fenoglio Fowler, L.P., which represented CrossHarbour Capital in the deal and arranged financing, reported the sale transaction.
The sale price more than likely is north of $100 million since CrossHarbour acquired the property in 2016 for $101 million and since then undertook a multi-million-dollar capital improvement plan at the hotel that was completed in 2017. HFF also brokered that transaction and arranged acquisition financing for the 2016 trade of the hotel property.
The HFF investment advisory team that representing the seller—CrossHarbour Capital—was led by senior managing director and head of HFF’s hotel group Daniel C. Peek, senior director Preston Reid and director Wyatt Krapf. The HFF debt placement team representing the borrower was led by senior managing director Michael Weinberg.
Hilton Tampa Downtown was fully renovated when it was converted from a Hyatt to a Hilton in 2013. The 18-story hotel features a rooftop pool and amenity deck, 24-hour fitness center, executive lounge, business center, 30,000 square feet of meeting space and three food and beverage outlets: the 211 Lounge, 211 Restaurant and a full-service Starbucks.
Situated on 5.6 acres at 211 North Tampa St., the hotel is near the University of Tampa, Amalie Arena, Tampa General Hospital, the Florida Aquarium, the Port Tampa Cruise Terminal and 9.7 million square feet of office space in Tampa’s central business district. The hotel is also within walking distance to Water Street, the $3-billion, 50-acre mixed-use office, retail and multi-housing district now under construction that is being developed by Tampa Bay Lightning NHL team owner Jeff Vinik in partnership with Bill Gates’ Cascade Investments.
HFF’s Peek says of the deal, “The Tampa Hilton transaction is further evidence to the trend of savvy investors seeking cash flowing investments in late-cycle growth markets. Tampa is on the leading edge of markets in the southeast and southwest that are expanding later in this cycle.”
“Tampa is no longer an up-and-coming city—it’s here,” Reid adds. “The amount of investment from world-class, institutional investors continues to pour in for well-positioned, quality assets like the Hilton Tampa Downtown.”
Published reports estimate that Walton Street Capital paid more than $42 million nearly three years ago for Westin Tampa Harbour Island hotel. Walton Street Capital acquired the 299-room, full-service hotel located along Downtown Tampa’s waterfront on Harbour Island from Blackstone.