BALTIMORE—Alex. Brown Realty Inc. (ABR) and TCOR Hotel Partners (TCOR) acquired the TownePlace Suites by Marriott in Lewisville, TX. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $4.4 million in the joint venture. Inwood National Bank will provide financing for the project.
The 118-room extended-stay hotel is located within the Vista Ridge Business Park in Lewisville, a suburban-Dallas community within the North Texas region. Positioned at the confluence of I-35 and state highway 121, the TownePlace Suites by Marriott Lewisville is accessible to major Texas cities and a short distance to DFW International Airport.
“We were able to acquire the hotel in an off-market transaction at an attractive basis,” noted Tom Corcoran, a principal with TCOR. “Extensive renovations have enhanced the asset and positioned the hotel to better compete within the market.”
The hotel recently underwent a $1-million renovation, which included renovations to the lobby and breakfast area, new carpet and lighting, as well as complete soft goods replacements in the guestrooms and upgraded televisions.
“The asset is producing attractive in-place cash flow,” stated Tom Burton, ABR’s chief investment officer. “In addition, the new management team is expected to generate additional cost savings, which will further enhance asset value.”
The transaction represents the first joint venture between ABR and TCOR. “TCOR is led by a group of experienced principals with a strong market presence,” said John Prugh, president and CEO of ABR. “The TownePlace Suites should prove to be a solid addition to the fund’s portfolio.”