MINNEAPOLIS—United Properties has just signed a purchase agreement with private REIT CRI Income to acquire the Days Inn Hotel on the edge of the University of Minnesota campus, at 2407 University Ave. in Minneapolis.
The parties expect to finish due diligence some time in the next 60 to 90 days; they have not set a closing date but anticipate finalizing the purchase in late December or early January. The property was listed for sale in June by Jon Ruzicka of Marcus & Millichap.
“We view this as a great near-term investment opportunity in a prime location, with potential for future redevelopment,” says Brandon Champeau, assistant vice president of United Properties. “It’s a property we have studied for some time. The operating income from the hotel will allow us the luxury of being patient as the company evaluates the property’s redevelopment potential over the next several years.”
If completed, this would represent United Properties’ first hotel acquisition. Days Inn Hotel has 107,000-square-feet on 2.45 acres with 130 guest rooms and a restaurant. United Properties says they would maintain the building, make renovations, and intend to retain the current management company. .
“The property has been operating as a successful campus hotel for many years now, and with planned light rail adjacent to the site and the Minnesota Vikings use of TCF Bank Stadium in 2014-2015, we believe the hotel will only get better,” says Champeau.
This is the second major transaction that the Minneapolis-based commercial real estate firm has recently announced. As GlobeSt.com reported last week, a joint venture between United Properties and Jerry’s Enterprises, Inc., received approval from the City of Woodbury, a suburb just east of St. Paul, to develop Bielenberg Gardens. The city approved the site plan and rezoning needed for the 90,000-square-foot project, which will include a grocery-anchored shopping center, a 12,300-square-foot retail building along with additional retail and commercial outlots.