The duo--which have teamed up for the first time in thistransaction--are acquiring the properties from affiliates of TheBlackstone Group LP. They are: the 321-room Hilton SeelbachLouisville in Kentucky; a 226-key Crowne Plaza Madison inWisconsin; and a 288-unit Sheraton Columbia in Maryland.
It is the Sheraton Columbia that Interstate is buying separatelywithin the JV, Ng says. It is acquiring the property for $46.5million, a sum that is part of the total $118 million paid for thethree properties. Interstate is tapping available cash and capacityunder its senior revolving credit facility to fund the transaction,which is expected to close in the fourth quarter.
"Sheraton Columbia is a value add play--we will be investing $12million to completely renovate the hotel," Ng explains. The capitalimprovements, which will include upgrades to all guest rooms andpublic spaces, are expected to be completed by the end of 2008.
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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.
