80-Acre Westward Resort Sells for $31M

American Property Hospitality Management, an affiliate of American Property Management Corp., outbid several offers from REITs, owner-operators and investment funds for the resort at 245 E. Ina Rd. "There were well over 10 initial offers when the deal first came to bid," says John Strauss, executive vice president in Jones Lang LaSalle Hotels' Los Angeles office. Strauss represented the seller, Greio, a department of Citigroup investments operating as Boutique Hotel Co.–Westward Look LLC.

Strauss tells GlobeSt.com that the seller picked American Property Management for its track record in the Phoenix and Tucson markets as well as its overall presence in the Southwest. "American Property had a demonstrated equity partner that made our client very comfortable," he adds.

Strauss says the new owner plans to reposition the resort, built in stages between the 1960s and 1990s, so that it appeals to appeal to upscale visitors to the area. He says he's not aware of a name or management change.

Gemstone Resorts International managed the property for Boutique Hotel Co. Washington, DC-based Northridge Capital LLC was the asset manager and helped to negotiate the sale on behalf of Greio. During the hold, Greio renovated rooms and added a second ballroom.

The average daily rate, RevPAR and occupancy are being held close to the vest due to confidentiality agreements. Strauss points out, though, that the asset will provide a strong investment for the new owner, especially in a market with a general hotel occupancy hovering 70%. "This is a very positive market going forward," he adds. "Arizona continues to draw a large base of demand, given the climate, airport infrastructure and an amazing amount of golf and spa amenities. In Tucson, especially, demand for this type of resort is strong and there's limited supply so the investors should do well."