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NORCROSS, GA-The Dow Hotel Co. LLC of Seattle and Boston-based AEW Capital Management LP have purchased the 272-room Hilton Atlanta Northeast. The property is a 16-year-old, 10-story hotel in this suburban city 24 miles northeast of Downtown Atlanta.<p.The joint venture partners didn't disclose the purchase price or the corporate name of the seller in a prepared statement. However, Atlanta hospitality consultants and area resort sources familiar with comparable properties tell GlobeSt.com the hilltop hotel was probably purchased for about $75,000 per room or a total $20 million. Construction sources in a position to know tell GlobeS.com a comparable Hilton-brand hotel today couldn't be built for less than $125,000 per room or an estimated total $34 million.

The hotel at 5993 Peachtree Industrial Blvd., near the Northeast Atlanta Corporate Park, was renovated in 2004. The partners say they plan to invest “several million dollars” to again renovate the property. A representative for the purchasers tells GlobeSt.com the occupancy is “in the high 60s” which is considered about average for this time of the year, according to hospitality industry sources.

The AEW Partners V LP real estate opportunity fund, managed by AEW Capital Management, is Dow’s formal partner in the deal. AEW Capital Management, which previously operated the hotel, will continue to manage the property located in the Norcross-Peachtree Corners area of Gwinnett County. The hotel will remain under the Hilton brand.

With 22,000 sf of meeting space, the partners say the hotel offers the largest meeting facilities in Gwinnett County. “We have managed this property for more than three years and seized the opportunity to team with AEW for the first time,” Murray L. Dow III, founder and president of Dow Hotel Co., says in the statement. He calls the acquisition “a great fit” for his company’s portfolio.

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