BW RRI IV, LLC, a partnership between a Singapore investor and Westmont Hospitality has won the bidding for a Red Roof Inn portfolio which contains 89 hotels with 10,715 rooms. Their winning bid of about $600 million ($55,996 per room) beat out runner-up Blackstone, which wanted to convert the properties to its Motel 6 brand.

Five Mile and Westmont put the portfolio up for sale this past December via Eastdil Secured. Westmont wanted to stay in the investment, so it teamed up with the unidentified Singapore investor to make an offer on the portfolio.

The sale enables majority partner Five Mile Capital to cash out and Westmont to retain a minority stake and continue to operate the portfolio.

There were two Tucson Red Roof Inns that sold in the transaction, the 118-room hotel at 3704 East Irvington Road (near Tucson International Airport) in Tucson for $2.89 million ($24,450 per room) and the 133-room hotel at 4940 West Ina Road in North Tucson for $2.95 million ($22,208 per room).

Five Mile Capital Partners of Stamford, Conn and Montreal-based Westmont Hospitality Group took over 143 Red Roof hotels in 2011 after the Red Roof chain defaulted on debt. Four years ago, they financed the purchase with a $275 million floating-rate loan from Starwood Property and Fortress Credit, and then plowed $70 million into improvements.

After the partnership sold 20 of the properties, Starwood and Fortress agreed to modify the loan in 2013, increasing its size to $285 million and extending its term by two years, to August 2015, plus three one-year extension options.

The senior $200 million portion of the modified loan, then backed by 123 hotels, was securitized via a stand-alone deal led by Wells Fargo. That loan, whose total balance has paid down to $235.9 million, will be retired in conjunction with this sale.

Barclays will finance the purchase with $450 million of floating-rate debt package that has a two-year term, with three one-year extension options. The bank will divide it into senior and mezzanine portions whose sizes are still being determined. Barclays will securitize the senior portion in a stand-alone deal and place the junior debt with high-yield investors.

Since the 2013 financing, Five Mile and Westmont has sold off an additional 33 hotels, reducing the portfolio to 90 properties and one more hotel remaining for sale.

For additional information log in and refer to RED Comp #2938 and #2932.

The Love Divine Fellowship Church sold its 2,935-square-foot building at 1922 S Farwell Avenue in Tucson for $275,000 ($94 PSF) to Potter’s Christian and Missionary Fellowship.

The church building had been well maintained and comfortably seated up to 100. Within the past few years seller had installed new flooring, new paint inside & out, new restroom fixtures, and chip-sealed the parking lot. The church is located 3 lots south of 29th Street on Farwell Ave and is about halfway between Swan and Craycroft.

The buyer will owner occupy the building and is associated with The Door Church at 2950 E Irvington Rd, Tucson. The seller carried back the loan on the property.

The seller then purchased the former Faith Community church facility at 2901 S Pantano Road in Tucson for $400,000 ($39 PSF) from the Christian Reformed Board of Home Missions in an all cash transaction.

This 10,186-square-foot church is a three building facility on 2.51 acres consisting of a main sanctuary with offices, restrooms, nursery and a separate fellowship hall. There is also a 3,102-square-foot residence in the back of the property and plenty of parking for growth.

John Yarborough with Romano Real Estate in Tucson represented the Love Divine Fellowship in both the sale and the purchase of the new location and both buyer and seller in the 2901 S Pantano Road transaction.

To learn more Yarborough should be reached at 520.577.1000.

Also login to see RED Comp #2815 and #2873 for additional information.

Taking advantage of low interest rates and costs, spurred by a rising economy and looking to the future, physicians in Northwest Tucson are finding it an ideal time for medical office expansion.

Tucson Endocrine Associates (Dr. Alexander Zwart and Dr. David Alster) purchased the 4,190-square-foot medical building at 5910 N La Cholla Boulevard in Tucson for $920,000 ($219.57 PSF). Wanting to expand from its current 2,719-square-feet office at 6050 N Corona Road and stay within the Northwest Medical Campus area Tucson Endocrine Associates sold its Corona building in March to Sonoran Behavioral Health Hospital in a reverse 1031 exchange, with USGE Holdings of Arizona XXII LLC facilitating.

Tucson Endocrine Associates is one of many healthcare providers expanding, contributing to a boon in medical office sales in Northwest Tucson. Doug Marsh with Oxford Realty Advisors in Tucson told us this was the third time he had sold the building at 5910 N La Cholla Blvd and represented the seller, Four Legged LLC in this transaction.

“Business-smart physicians are looking to the future,” said Marsh, “for some, the timing is right for expansion. In addition to low interest rates and construction costs, a large selection of buildings that once housed failed businesses are for sale or lease.”

Such was the case with the office condo at 1631 West Ina that had never been occupied and was sitting vacant, in shell condition, for many years waiting for the right occupant.

Four Legged LLC (Jeanette K Wend, trustee) dba NNS Clinical Research, a neuroscience research clinic, sold the 5910 N La Cholla building for expanded space in 7,462-square-feet at 1631 West Ina Road, Tucson that was bought in December 2014. The tenant improvements of the West Ina building having been shell condition, took a bit longer than expected and postponed the move for not only Tucson Endocrine Associates but also the Sonoran Behavioral Health expansion into their new location.

Once TI’s are complete, all the parties should be prepared to shuffle into new places.

David Volk and Bruce Suppes with CBRE in Tucson represented the buyer at 5910 N La Cholla Blvd, Tucson Endocrine Associates; while Doug Marsh and Lori Casey of Oxford Advisors represented the seller, Four Legged LLC.

Dean Cotlow of Cotlow Company represented the seller, Amigo Properties, at 1631 W Ina Road and Doug Marsh represented the buyer, Jeanette K Wendt for NNS Clinical Research.

The buyer and seller of 6050 N Corona Road were self-represented in that transaction.

For more details on the sale of 6050 N Corona Road, Tucson see RED Comp #2761, details on 1631 W Ina Road, Tucson see RED Comp #2308. For additional information on the sale of 5910 N La Cholla Blvd, see RED Comp #1402 and #2888.