ROSSLYN, VA–Bethesda, MD-based Host Hotels & Resorts announced in its earnings call that it is under contract to sell the Key Bridge Marriott for $190 million, including $8 million for FF&E replacement funds. The sale is expected to close by the end of the first quarter 2018, subject to customary closing conditions. The buyer, according to Host Hotels, is expected to redevelop the site for retail, residential and lodging.
A source tells GlobeSt.com that the buying entity is a JV between two companies from Los Angeles.
It was only last year that the lodging REIT acquired the ground leases for the hotel for $54 million. It had been trying to gain control of the leases for ten years prior, CEO Ed Walter said at the time.
When the REIT took control of the asset it said it was considering a range of options for it, including, according to an earnings call at the time:
a complete scrapping of the asset and a complete redevelopment of the entire parcel, which would involve for us probably selling off a number of those parcels to other parties. We are also potentially redeveloping a part of the hotel and then selling off portions of the hotel to third parties to develop either residential or office.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
