The hotel, which is still under construction, is expected to open in October. The transaction, which Innkeepers negotiated directly with Starwood, is expected to close in the fourth quarter.
This is the company's first acquisition from Starwood, according to its CEO Jeffrey H. Fisher. "This is a strong lodging market, where half the current supply is more than 10 years old, which we believe will give us an added competitive advantage," he says in this morning's press release.
The hotel is located in the mixed-use development of King Farm, which is undergoing expansion. Irvington Center office park, also part of King Farm, is adding an additional 1.7 million sf to the 3,200 residential units, 12,000 sf of retail and 920,000 sf of class A office space that's already been constructed.
According to the release, Innkeepers will fund the acquisition with its unsecured line of credit. Last week Innkeepers announced it had entered into an agreement to acquire from Bethesda, Md.-based RLJ Urban Lodging Fund LP's four hotel properties in Southern California for $215 million or $231,000 per room.
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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.
