ORLANDO, FL—Holliday Fenoglio Fowler, L.P. (HFF) has closed the $10.25-million sale of Castillo Real, a 60-room, full-service, upscale boutique resort hotel in St. Augustine, FL.
HFF marketed the property on behalf of the seller, a joint venture partnership between Impact Properties and DeBartolo Development. MSB Hotels III purchased the asset and assumed an existing CMBS loan. Elite Hospitality, LLC will manage the hotel.
Completed in 2005, Castillo Real underwent extensive renovations during the past three years, including a full guestroom renovation. The hotel is part of Choice Hotels’ Ascend Collection and features beach access, a zero-entry outdoor pool and a whirlpool, sauna, steam room, fitness center and La Cocina Restaurant.
The hotel is less than five miles from historic downtown and other destinations, including the Fountain of Youth Museum, Castillo de San Marcos, Fort Matanzas, San Sebastian Winery and the St. Augustine Lighthouse.
Managing Director Michael Weinberg and Associate Director Preston Reid led the HFF investment sales team representing the seller.
“It was logical for MSB Hotels III to buy the asset considering some of the family members (owners) also own the newly developed Courtyard by Marriott across the street as well as Hilton Garden Inn and Hampton Inn a few blocks north of the Castillo Real, which are all managed by Elite Hospitality LLC,” said Manoj Bhoola, president and COO, Elite Hospitality, LLC.