IRVING, TX—Officials of Solid Rock Group, an investment and advisory firm focused on the hospitality, healthcare and media sectors, has led two separate acquisitions of the 122-room Anza boutique hotel and the 128-room Courtyard Atlanta Airport West on behalf of a private investment group for an undisclosed sum.
Solid Rock also has been retained to provide on-going advisory and asset-management services for the two properties on behalf of the owners. Eastdil Secured, LLC, and Hunter Hotel Advisors brokered the deals, respectively.
“Our institutional investors, high-net worth family offices and sovereign fund clients are seeking highly experienced advisors in this phase of the hotel real estate cycle,” said Charlie Muller, who recently joined Solid Rock as a principal and managing director of its Dallas office. “While the outlook for the hotel industry remains positive over the next few years, there are a number of unknowns, such as moderating RevPAR growth, BREXIT and the upcoming presidential election, that can impact investor sentiment of the industry. Investors seek acquisition candidates who have strong upside, as well as the ability to withstand an economic downturn. As a result, we have seen a significant uptick in the need for acquisition and asset-management advisory services.”
Muller continued, “With these two hotels, we have advised on more than $675 million of hotel transactions year-to-date and are actively engaged in negotiations on behalf of investors for an additional $510 million. Due to our long-standing relationships with hotel owners, operators, investors and brokers, we are able to move quickly to identify, negotiate and close on both on- and off-market transactions.”
The Anza is located at 23627 Calabasas Rd. in Calabasas, CA. The upscale, boutique hotel is near dining, retail and business office outlets and adjacent to the 101 Ventura Freeway. Demand generators include the 215,000-sq.-ft. Commons at Calabasas, a regional lifestyle center and entertainment destination; and the Warner Center Office Concentration in neighboring Woodland Hills, the corporate and commercial hub of the San Fernando Valley.
Guestrooms feature complimentary wireless internet access, a bathroom with walk-in shower and rain showerhead, microwave, refrigerator and coffeemaker. Hotel amenities include the Graze Bistro & Bar, a heated pool, 24-hour fitness center, a business center and access to 1,000 sq. ft. of private meeting space able to accommodate up to 50 people.
“Through our long-standing relationships with national, regional and local banks, we negotiated a long-term loan for the hotel with historically attractive rates, which will enhance returns,” Muller commented. “This property is located in an impossible-to-replicate location in the southwestern San Fernando Valley. Our analysis of the property revealed it will benefit from strategic capital improvements, enhanced asset management and greater focus on marketing and operating margin control.” The improvements are slated for a targeted completion date of the second quarter 2017.
Courtyard Atlanta Airport West is situated near Hartsfield-Jackson International Airport, the Courtyard Atlanta Airport West and downtown Atlanta. Across the street from the more than 1.2 million sq. ft. of premium retail space, the hotel is situated within Camp Creek Pointe, at the entrance of Camp Creek Business Center an industrial development with four million sq. ft. of developed space.
The four-story hotel features a recently renovated lobby and guestrooms, the Courtyard Bistro & Bar, 24-hour fitness center, 24-hour business center, an outdoor pool and complimentary WiFi and parking. Additionally, the property provides nearly 2,000 sq. ft. of meeting space that can accommodate up to 150 people.
“We are working with our new management company to implement an effective capital expenditure plan,” Muller said. “The Atlanta airport submarket is strong, and the hotel’s close access to downtown Atlanta gives us greater demand generators, positioning the hotel well in all phases of the real estate cycle.”