Located on the edge of Downtown, the Marriott at the Capitol is a class-A, full-service hotel that offers 365 guestrooms and more than 14,750 sf of meeting space. Other amenities include a 9,600-sf ballroom, 140-seat restaurant, two lounges, health club and indoor pool.
The hotel has been purchased on behalf of Lend Lease's Value Enhancement Fund IV, a real estate opportunity fund for institutional investors. It is the fourth in a series of closed-enhanced return real estate investment funds designed to take advantage of inefficiencies at varying stages of the real estate cycle. This is the Fund IV's third hotel acquisition.
This also is Lend Lease's second and largest purchase in the Austin area, where it also holds title to the Lakeway Inn. Other hotels in the Lend Lease portfolio include the Ritz Carlton in Pasadena, CA; Boston Harbour; and Ritz Carlton on Half Moon Bay in San Francisco.
Diana Taylor, vice president of Lend Lease's lodging and leisure group, tells GlobeSt.com that a number of factors had played in the company's decision to purchase the Marriott at the Capitol. She cites the diverse local economy, the office projects under construction and the expansion of the Austin Convention Center as primary reasons.
"We think Austin has strong real estate fundamentals," Taylor tells GlobeSt.com. "This is a place where people want to live, work and play."
The transaction has taken eight months to complete, Taylor says. For their part, USAA company officials say it sold the hotel to concentrate on other assets and categories in its real estate portfolio, which includes the Westin LaCantera in San Antonio, among others.
USAA has owned the Capitol at the Marriott since 1986. It underwent a full-scale renovation in 1998.
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