NATIONAL REPORT—Transactions and financings are continuing apace at the end of third quarter.
Newmark Knight Frank Hotels is presenting the fee simple interest in the 132-room Clarion Inn & Suites in midtown Savannah, GA. The interior-corridor hotel, located on Abercorn St., is situated on 3.4+/- acres and has 500 sq. ft. of meeting space, fitness center, business center, outdoor pool with courtyard, complimentary breakfast, laundry service and high-speed internet access.
The property is less than a mile from Oglethorpe Mall, which features some 150 stores with anchor tenants such as Sears, Belk, Macy’s and JC Penney. The hotel is five miles from historic downtown Savannah and less than 10 miles from Savannah International Airport.
The Clarion Inn & Suites was renovated and converted from a Rodeway Inn in 2016, with the owner completing a significant amount of work into Q2 2017.
According to NKF, last year the hotel “had relatively lower revenues due to a major renovation, property disruption and rooms being out-of-order, and 2017 marks the first year as a rebranded, renovated, and repositioned Clarion.”
As of June (YTD), the hotel had total revenue of $1.1 million and is budgeted to achieve $2.5M+/- by year’s end, NKF indicated, with the hotel still ramping up after the renovation.
There also is an extra parcel of land adjacent the Clarion Inn & Suites, offering approximately 25,125 sq. ft. (0.58 acres). This additional land is separate from the hotel sale, noted NKF.
Going Independent in Chicago
In the Windy City, Newmark Knight Frank Hotels arranged a three-year, $74,850,000 bridge loan for the Carbide & Carbon Building, located at 230 North Michigan Ave., which houses a Hard Rock Hotel.
Ownership of the hotel, Becker Ventures, plans to reposition the property as St. Jane Chicago, according to NKF.
Becker Ventures with hotel manager, locally based Aparium Hotel Group, plans to close the Hard Rock Hotel currently operating within the building on Dec. 1. The hotel will reopen next year under the independent flag.
Renovations will include updated interiors with the addition of an indoor/outdoor rooftop bar and lounge on the 24th floor, a full-service restaurant, a market café, cocktail bar, and 11,000 sq. ft. of meeting and event space.
The hotel is expected to debut in the spring with 363 guestrooms and will include The Tower at St. Jane, a boutique luxury entity on floors 25 and above that will feature 33 luxury suites.
Executive Managing Director Ben Greazel of NKF’s Chicago Capital Markets Group originated the loan, which will allow for planned renovations at the property. NKF arranged the floating rate loan with Bank of the Ozarks. The 37-story, Art Deco high-rise was designed by the Burnham Brothers and constructed in 1929.
Partial Stake in Cobblestone Product
On the market in Beulah, ND, is a 22.37% partial ownership stake in a 54-unit Cobblestone Hotel & Suites offered by Amber Hotel Co.
The interior-corridor, two-story hotel was built in 2014 and has annual revenue of $1,278,000 and NOI of $671,003, according to Amber Hotel Co. data.
The broker indicated the transaction as the “perfect opportunity for a passive investor,” with financing and management already in place.
The asking price is $1 million.