A consortium of private investment groups affiliated with Hall Equities Group of Walnut Creek, CA and Real Estate Investor and Developer Mark Hall have acquired 29 hotels and the corporate assets of Duluth, Minnesota based hotelier ZMC Hotels.

ZMC Hotels is a third generation family business previously owned and operated by the prominent Goldfine Family of Duluth. Employing more than 1,000 people, ZMC Hotels owns and operates both private label boutique hotels, as well as those licensed by many prominent brands, including Hilton, Marriott, IHG, Wyndham, and others.

The hotels are disbursed across the country from Duluth to Phoenix, AZ, to Florida, and many locations in between. Five hotels are clustered in Scottsdale, Arizona and the Hampton Inn at 1375 West Grant Road in Tucson that sold for $4.41 million ($48,425 per room) for the 91 room hotel. Total sale price and other properties were undisclosed.

All of the hotels, along with other select quality properties, will be master leased to and managed by Zenith Asset Company, an affiliate of Hall. Zenith and Hall Equities Group will be headquartered out of Walnut Creek, California, and Mark Hall is the CEO for both companies. Hall intends to retain certain senior ZMC Hotels management staff located in Duluth, Kansas City, and Scottsdale, but will consolidate accounting and construction functions to the Walnut Creek, CA headquarters.

Hall stated, “We are pleased our investor groups have the opportunity to acquire the ZMC operating platform, and all 29 of the company’s hotels, together with several sites for additional hotel expansion projects. We have had a few hotel investments over the last ten years, but with this acquisition, we will now be able to include hospitality product in our portfolio of investment opportunities in a more significant manner.”

Hall Equities Group combined with the ZMC Hotels portfolio now totals nearly 10 million–square-feet of income property in 140 properties in 16 states. Hall Equities Group has investments in multi-family apartments, office buildings, retail centers, industrial space, self-storage, medical and life science real estate, residential subdivisions, and hospitality. It is expected that Zenith will take over management and operation of certain existing hotels controlled by Hall Equities Group. Following this, Zenith’s total hotel portfolio will then consist of some 4,000 rooms in 34 properties.

Hall has plans for more than $40 million in immediate capital investment improvements and upgrades within the ZMC Hotel portfolio. In addition, Zenith also plans to build several new hotels. “We will employ the operational skills and experience of the ZMC team, together with our own homegrown development and construction management experience, to immediately focus on building five new hotels, including two in Scottsdale, AZ, one in the Puget Sound region, one in our hometown of Walnut Creek, CA, and one in Duluth, MN. Additional projects will be pursued in coming years,” stated Hall.

Equity financing for the transaction was derived from a variety of sources, including the sale of three quality properties by the Hall Equities Group sponsored investment groups, cash on hand, and the refinancing of two multi-family apartment buildings. The refinances were handled through Wells Fargo Bank, and JP Morgan/Chase. Hotel purchase money financing was provided by Bank of America. New hotel development projects going forward will have new standalone financing.

SMSJ Tucson Holdings, a new joint venture between Tenet Healthcare, Dignity Health in Arizona and Ascension a faith based healthcare organization, closed on the acquisition of Carondelet Health Network for approximately $105 million. Ascension prior to this owned 100 percent of Carondelet. Tent will be the majority partner in the new joint venture and will manage the operations of three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated business in Tucson and Nogales, Arizona. Dignity and Ascension will own minority interests in the partnership.

The facilities in the new partnership will include:

• St. Joseph’s Hospital (486 beds) 350 N Wilmot Rd in Tucson
• St. Mary’s Hospital (400 beds) 1712 W Anklam Rd n Tucson
• Holy Cross Hospital (25 beds) 1171 W Target Range Rd in Nogales
• Carondelet Heart & Vascular Institute at St. Mary’s Hospital 4888 N Stone Ave in Tucson
• Carondelet Neurological Institute at St. Joseph’s Hospital 350 N Wilmot Rd in Tucson
• Carondelet Medical Group in multiple buildings across Tucson
• Carondelet Specialist Group 6320 N La Cholla Blvd in Tucson

Carondelet’s services also include imaging centers and other ambulatory services and ancillary businesses.

The joint venture will maintain Carondelet’s Roman Catholic heritage and identity through an agreement with the Diocese of Tucson. Additionally, Carondelet’s existing charity care policies will remain in place.

The partnership was announced in July and closed on September 1^st quicker than anyone had expected.

“We look forward to the opportunity to partner with two highly respected and dedicated healthcare organizations to improve healthcare delivery to the communities of Southern Arizona,” said Britt T. Reynolds, President of Hospital Operations at Tenet. “Through this innovative partnership, we will not only continue Carondelet’s 135-year healthcare mission to care for residents across Tucson and Southern Arizona, but will also connect Carondelet to a larger, growing statewide healthcare network, enhancing patient access to a wide range of healthcare resources throughout the state. This is consistent with Tenet’s strategy to create new, innovative models for patient care.”

Tenet and Dignity Health separately own and operate hospitals and clinics in the Phoenix area and together manage a growing accountable care organization, the Arizona Care Network (ACN). The organization currently includes more than 130 patient care facilities across Tenet’s and Dignity Health’s Phoenix-based healthcare systems, with more than 3,300 providers and more than 200,000 covered lives. A Tucson–based joint venture will connect Carondelet to ACN, which will provide increased access to care for patients, strengthen and grow Carondelet’s relationships with physicians, provide employee development opportunities for current and future employees, and fund strategic growth initiatives across Southern Arizona.

California-based, Taco Bell Corporate sold four Tucson stores to a franchisee, CLC Tucson Properties, LLC of Montana (Craig Langel, president) for $5.04 million. The buyer already owned other Taco Bell franchises in Montana.

The store locations are as follows:

6616 E Grant Road in Tucson sold for $1.235 million for a 2,370-square-foot building (built 2009) on 24,071-square-feet located at Grant and Tanque Verde Roads;

10815 N Oracle Road in Oro Valley sold for $1.46 million for a 2,818-square-foot building (built 2012) on 19,419-square-feet located at First and Oracle Road;

1720 W Speedway Blvd in Tucson sold for $1.183 million for a 2,740-square-foot building (built 2010) on 23,860-square-feet located at Speedway Blvd and Silverbell Road;

2150 W River Road in Tucson sold for $1.165 million for a 2,730-square-foot building (built 2008) on 35,619-square-feet located at River Road and La Cholla Blvd.

Each Taco Bell store location employees approximately 25 employees on average. There were no real estate brokers involved in these sales.

In addition to the stores sold, a lot at Las Plazas sold with the rest of the corporate Taco Bells in the Tucson for $575,000. Nancy McClure and Michael Laatsch with CBRE’s Tucson office negotiated the transactions on behalf of the seller, OVP Development Company, LLC and Terry Dahlstrom of Volk Company represented the buyer.

Since the first restaurant opened in Southern California back in 1962, Taco Bell has been one of the top fast food destinations for those craving something other than hamburgers. Owners of a Taco Bell franchise benefit from the well known “Live Más” slogan and the incredible variety of burritos, nachos, chalupas, tacos and more. In 2012, Taco Bell launched a new line of tacos – Doritos Locos Tacos – that have Nacho Cheese- and Cool Ranch-flavored shells. Specialty items like the Crunchwrap Supreme – tacos that are folded and grilled for convenient one-handed eating – are also extremely popular. The low-fat and low-calorie Fresco Menu and the Cantina Bell Menu, featuring dishes created by celebrity chef Lorena Garcia, have already established loyal followings.

Taco Bell Corp., a subsidiary of Yum! Brands, Inc., (NYSE: YUM), is the nation’s leading Mexican-inspired quick service restaurant. Taco Bell and its more than 350 franchise organization have nearly 6,000 restaurants across the United States that proudly serve more than 36 million customers every week.

For more information see RED Comps #3210, #3223, #3220, #3222, and #3221.