The 793-room hotel with 32,000 sf of meeting space and a 400-car underground parking garage, is attached to the city's new Boston Convention and Exhibition Center.
The deal also includes an option to purchase a leasehold interest of an adjacent site that would allow the new owners to build a 325-room hotel based on its size and zoning regulations. Additionally, the transaction includes a leasehold interest of 100,000 sf of retail space at the site, which is slated to close by the end of Q1.
All three properties, which come with a 99-year ground lease from the Massachusetts Convention Center Authority, were sold by a joint venture comprised of Boston developers Joseph Fallon, Stephen Karp and Steve Fischman.
The acquisition is the first Boston asset purchased by the two-year-old firm. The company also owns 20 hotel properties in 10 states and the Virgin Islands.
The company said in a statement it expects to make about $20 million in tenant improvements to the retail space by 2008 and projects that the hotel and retail property will generate $24.6 million this year in earnings before expenses. That earning figure is expected to rise to $31.8 million in 2008.
Officials from DiamondRock could not be reached for comment in time for GlobeSt.com's deadline.
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