Dealmaker: Marcus & Millichap Arranges 9-Property Hospitality Portfolio Sale
Marcus & Millichap, Encino, Calif., arranged a sale of nine hospitality properties across nine states to Lockwood Development Partners, totaling 1.55 million square feet with a value of $225 million.
The properties include:
• Crowne Plaza, Memphis, Tenn., 319 rooms
• Crowne Plaza, Austin, Texas, 293 rooms
• Clarion Hotel, Orlando International Airport, 335 rooms
• Crowne Plaza, Houston, 243 rooms
• Crowne Plaza, Dayton, Ohio, 283 rooms
• Crowne Plaza, Reading, Pa., 259 rooms
• Garden Plaza, Marietta, Ga., 218 rooms
• Former Marriot, Jackson, Miss., 303 rooms
• Crowne Plaza, Tulsa, Okla., 286 rooms
Lockwood Development Partners plans to repurpose these properties and create “multi-dimensional assets that will help stimulate the economy and provide essential resources and opportunities to the veteran and senior communities,” said Eddy Nevarez, associate director of Marcus & Millichap’s National Hospitality Division and agent for the buyer.
The repurposed, multifaceted assets will feature a rebranded, eco-friendly, and sustainable hotel operation, affordable multifamily housing and “ghost kitchens,” where local vendors partner with Uber Eats to do business without upkeep costs of a brick-and-mortar restaurant. In conjunction with the Veteran Affairs’ Mission Act, the properties will also serve as a resource for veterans to receive permanent housing, physical and mental assistance and other support programs through SarahCare, an organization dedicated to providing resources for seniors.
“With the majority of the assets located in diverse, metropolitan cities such as Austin, Houston, Memphis and Orlando, the properties’ versatility and accessibility will encourage economic growth and opportunities,” Nevarez said.
Nevarez added Phase one of Lockwood Development Partners hotel repurposing initiative “serves as a benchmark for future large-scale portfolios, serving as a lifeline by converting struggling hospitality properties into multi-faceted assets that provide opportunities and resources for veterans as well as the community.”
Marcus & Millichap’s brokers of record in Florida, Georgia, Mississippi, Ohio, Oklahoma, Pennsylvania, Tennessee and Texas are, respectively, Ryan Nee, John Leonard, Mickey Davis, Michael Glass, Mark McCoy, Sean Beuche, Jody McKibben and Timothy Speck.
