TUCSON, Arizona – HSL Properties (Omar Mireles, president) of Tucson acquired the 109-room Hampton Inn & Suites at 5950 N Oracle Road and the 76-guestroom TownPlace Suites by Marriott at 5900 N Oracle Road in Tucson for an aggregate price of $12.06 million ($65,189 per room) at auction.

The seller, Miami Florida- based, LNR Partners, was the loan servicer and acquired these and La Posada Lodge & Casitas at 405 W Rudasill Road in 2012. La Posada sold for $2.52 million ($35,000 per room) for the 72-rooms at the same auction.

Bill Murney with Hospitality Real Estate Counselors (HREC) of Phoenix represented the seller in the transactions.

“Located in the high-end Northwest Tucson submarket, all three properties are in excellent condition having completed $6 million of capital improvements in 2014 by the seller,” Murney said. “The Hotels’ highly visible location on North Oracle Road is in a high-barriers to entry area of Tucson, provides easy access to the demand generators in Northwest Tucson as well as great accessibility to the high end shopping and dining amenities of the area.”

The Tucson Mall, situated less than 2 miles from the Hotels, is the largest shopping center in Tucson, and offers over 1.3 million-square-feet of retail space. The Hotels also significantly benefit from demand generators such as the University of Arizona, the U of A Medical Center, Asarco, and Ventana Medical Systems, as well as their proximity to major attractions such as the Saguaro National Park, Santa Catalina Mountains and Downtown Tucson.

HSL preferred the branded hotels for HSL’s Portfolio, now with eight hotels and over 1,100 rooms. Other HSL hotels include The Ritz-Carlton Dove Mountain, Hilton Tucson El Conquistador Resort, The Doubletree Suites by Hilton, Best Western Plus Tucson Airport, and La Quinta Inn & Suites – Reid Park Hotel and Casa San Sebastian in Puerto Vallarta, Mexico.

The buyer of La Posada Lodge & Casitas, Robert Albright, Jr. of Tucson, didn’t mind the hotel not being branded for his first hotel venture.

Murney reported that Tucson is a major beneficiary of market compression in Phoenix, which has assisted in Tucson’s recent strong upswing in its lodging market fundamentals. During the YTD 2016 period, each of Tucson’s defined submarkets have outperformed their 2015 YTD performance by more than 10%. Furthermore, the Tucson Northwest tract, where these Hotels are located, has seen RevPAR growth of over 6% during the previous 12-month period.

For more information, Murney should be reached at 602.732.4777.

To learn more, login and see RED Comps #4580, #4581 and #4596.

[mepr-show rules=”58038″] The Hampton Inn & Suites at 5950 N Oracle Rd, closed on 2/23/2017 at $7,560,000 with 109 rooms including 28 kitchenettes ($69,358 per room). RED Comp #4580.

The TownPlace Suites by Marriott at 405 W Rudasill Rd closed 3/6/2017 at $4,500,000 with 76-rooms ($59,211 per room). RED Comp #4596.

La Posada Lodge & Casitas as 5900 N Oracle Rd closed 2/22/2017 at $2.520,000 with 72-rooms ($35,000 per room). RED Comp #4581. [/mepr-show]

$8 Million Property Renovation Planned to Transform Hotel Back to Original Glory

Caliber Hospitality, a division of Caliber-The Wealth Development Company, acquired the 7-story, 232-guestroom, Hilton Tucson East in Tucson, AZ, for $9.27 million ($39,947 per room). Located at 7600 E Broadway Blvd. in Tucson’s business district, the property features 12,000-square-feet of meeting and convention space, a pool and upgraded dining facilities.

Purchased with private investor equity, (Tucson East LLC, Sam Fox, manager) in partnership with the Caliber Distressed Real Estate Income Fund (CDIF, LLC), Caliber plans an $8-million property renovation. The Hilton Tucson East purchase expands Caliber’s lodging investment portfolio to six hotel properties in both Arizona and Alaska, and includes Crowne Plaza, Hampton Inn & Suites and Holiday Inn & Suites. As with all of Caliber’s hospitality holdings, HMC Hospitality will manage the hotel’s day-to-day operations.

Chris Loeffler, CEO and co-founder of Caliber-The Wealth Development Company said, “The Hilton Tucson East is the proverbial ‘diamond in the rough’ that with the proper renovation plan and managerial expertise, will be transformed into one of the finest hotels in Caliber’s portfolio.” He added, “The property will provide significant investor value creation as it was purchased approximately 70% below estimated replacement cost. Due to its solid market fundamentals, we’ve wanted to expand within Tucson beyond our current single-family and multi-family residential portfolio. This hotel is an excellent opportunity to do just that.”

The hotel is located on 6.36 acres between Downtown Tucson and Saguaro National Park and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard. “We’re thrilled to partner with Caliber, and excited to revitalize and restore this property to its original beauty,” said Frank Heavlin, president of HMC Hospitality. “We’ve set into motion our personnel and property plans in order to elevate services and provide an exceptional experience for our guests. This hotel will become a diamond in the Caliber /HMC hotel portfolio.”

Caliber assists investors in building their wealth through both equity and debt real estate based investments, either through individual assets, or through private funds. Caliber is focused upon opportunistically acquiring various types of commercial assets, with in place cash flow, and maintaining low leverage on them. Through its proven renovation and management expertise, Caliber is able to increasing revenue, maximize tax benefits, all the while protecting investor capital. Caliber currently invests in Hotels, Self-Storage, Apartment Communities, Single Family Residential Properties, and Office Buildings. Caliber is a fully, vertically integrated, full service real estate investment firm controlling all aspects of the investment cycle. Services include acquisitions, construction, development, property, and asset management.

Bill Murney with HREC Investment Advisors of Phoenix handled the transaction for the seller, Champion Investment Corporation (Chia Sheng Hou, CEO) based in Poway, California.

To learn more, see RED Comp #3963.

For more information, Murney can be reached at 602.732.4777.