Investment Firm Building $49M Hilton Hotel

BLOOMINGTON, MN-W.P. Carey is financing a 255-room Hilton hotel here for $49 million, through a real estate fund titled Corporate Property Associates 16-Global Inc., which will own the hotel upon completion. Mortenson Development Inc. is the developer, and Milwaukee-based Marcus Hotels and Resorts has been selected as the operator of the property.

The 11-story hotel will be built at the southwest corner of I-494 and France Avenue, says Jason Fox, a director at W.P. Carey. Amenities will include a ChopHouse restaurant, several thousand sf of meeting space, a business center, indoor swimming pool and a fitness center. “In our mind this market is in prime need of a new, modern business hotel.The competitors in the area are older, we think we’ll compete very well against them,” Fox tells GlobeSt.com.

This is the fifth development that W. P. Carey is doing with Mortenson, Fox says. The project should be complete by January 2008, he says. M.A. Mortenson Co. is the design builder of the project, and Walsh Bishop Associates Inc. is the project architect.