InTown Suites Sold to Starwood Capital
Tuesday July 16th, 2013 - 3:17PM EH
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NEW HYDE PARK, NY—Kimco Realty Corp. has closed on the sale of InTown Suites company and related real estate assets to an affiliate of Starwood Capital Group for a gross sales price of $735 million, including $609 million of existing mortgage debt.
Kimco Realty Corp.’s share of proceeds from this transaction after closing adjustments was approximately $103 million. Citigroup served as the financial advisor to InTown Hospitality Investors LP on the sale.
The InTown Suites portfolio represented the single largest remaining non-retail investment for the company with a book value of approximately $83 million. As a result of this sale and other non-retail transactions completed during the quarter, Kimco’s non-retail investment balance will be approximately $200 million or less than two percent of gross assets; the lowest level since the company initiated the monetization of its non-retail investments in 2010.
InTown Suites was owned by InTown Hospitality Investors LP, a joint venture in which Kimco held a 75 percent interest in a portfolio of 138 extended stay properties with approximately 18,000 rooms across 21 states.
Tags: • Hospitality • Acquisitions • Ownership •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.