Steven D. Surgent, vice president of acquisitions for theScottsdale-based Everest Holdings, calls the deal a "classicturnaround play," pointing out that the cosmetic upgrades,repositioning and retention of Driftwood Hospitality Management LLCof Jupiter, FL significantly increased the hotel's value. He pointsout, however, that there is still some upside in the 26-year-oldasset at 2532 W. Peoria Ave.

"Occupancy is 70%. And compared to the competition, there'sstill room to grow the rate," Surgent says, adding occupancy was50% when Everest acquired the hotel. He tells GlobeSt.com thatWexTrust was interested in the upside potential, and plans toinvest more than $3 million to renovate the rooms. Additionally,the nine-acre tract has enough room to add rooms and meetingspace.

Surgent says the deal was in escrow for awhile due to a loanassumption. Although the loan is locked out for defeasance untilMarch 2008, WexTrust already has plans to refinance. "Other bidderswere willing to assume this financing and there was, frankly, ahigher bidder on the property," Surgent adds. "But WexTrust did alot of due diligence, and they went through it several times, andprovided the most comfort in terms of their homework."