22 More Under Purchase and Sale Agreements Expected to Still Close in the Second Quarter

Newton, MA & Tucson, AZ — Service Properties Trust (Nasdaq: SVC) today announced progress on its previously announced plan to sell 68 Sonesta branded hotels. To date, 42 hotels totaling 6,348 keys have been sold for aggregate proceeds of $397.6 million ($62,634 per room).

An additional 22 hotels totaling 1,781 keys are under purchase and sale agreements for an aggregate sales price of $141.0 million. SVC continues to market four additional hotels for sale. SVC currently expects the majority of the 22 hotels under purchase and sale agreements to close in the second quarter of 2022.

Among the 42 closings was the Tucson Sonesta Hotel at 6885 S Tucson Blvd that recorded at $8 million ($66,666 per room) with 5 stories, 120 rooms, pool, meeting rooms, business enter, fitness center located at the Tucson Airport. The transaction closed May 17, 2022.

Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement: “The hotels we are selling are non-core to SVC. We expect that upon completion of this disposition initiative, SVC will have a higher quality lodging portfolio and enhanced liquidity.”

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with more than $12 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2022, SVC owned 298 hotels with over 47,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of March 31, 2022, SVC also owned 786 retail service-focused net lease properties totaling over 13 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with more than $37 billion in assets under management as of March 31, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

SVC purchased the property in 1997 for $8,535,458.

To learn more, see RED Comp #9877.

Tucson, Arizona – Lawrence Briggs, a local private investor, has purchased a 4,265-square-foot medical office building in Tucson from Arizona-based 1815 WSM LLC for $938,000 ($220 PSF).

David Montijo of CBRE in Tucson represented the seller in the transaction that closed May 13, 2022.

Located at 1815 W. St. Mary’s Road on the St. Mary’s Hospital Campus, the one-story property features ample parking and is the site of the former Tenet Cardiovascular building. The property was vacant at the time of sale and sold for investment. 

For more information, Montijo should be reached at 520 323 5136.

To learn more, see RED Comp #9880

TUCSON, ARIZONA — Hughes Federal Credit Union purchased 79,072 square feet of industrial flex space at 3301 – 3321 E. Global Loop in Tucson. The property was purchased from Global Loop Tucson, LLC, Mercator Properties, LLC, and RSD MT Marathon, LLC c/o Dire Wolf Ventures of Anchorage, AK for $13,893,950 ($176 PSF).

The class A brand new interior build out has multiple bathroom cores, break areas, coffee stations, wellness rooms, and conference rooms of various sizes. Power up to 8,000 amps of electrical that is fully redundant, serviced by two separate substations. Generator existing fenced pad with conduit to the interior electrical room, new 300-ton water cooled chiller, and a clear height minimum of 22 feet. High density parking (8+ to 1,000 SF) is expandable.  The property is also located in an Opportunity Zone.

The transaction closed May 9, 2022. Hughes Federal Credit Union purchased the property for administrative back office support use for the credit union.

Hughes Federal Credit Union was formed in 1952 in Tucson to serve the financial needs of Hughes Aircraft Company (now Raytheon) employees and their families. In 1992, it merged with Arizona Transportation Credit Union, which served Union Pacific Railroad employees and more than 400 other select employee groups in Phoenix and Tucson. In 2001, the National Credit Union Administration approved Hughes Federal Credit Union to serve the underserved community in Tucson providing membership eligibility to anyone who lives, works, worships or attends school in Tucson. In 2020, it merged with APC Employees Federal Credit Union, which served Arizona Portland Cement and Cal Portland employees and their families in Arizona.

Today, Hughes Federal Credit Union serves more than 169,000 members and has more than $2 billion in assets.

Jesse Blum and Stephen D. Cohen, Principals and Industrial Specialists with Cushman & Wakefield | PICOR, represented the seller in this transaction. Brian Harpel with Velocity Retail Group, Tucson, represented the buyer.

For more information, Blum can be reached at 520.546.2772, Cohen can be contacted at 520.546.2750 and Harpel should be reached at 520.721.7999.

To learn more, see RED Comp #9864.