(For more retail coverage, click GlobeSt.com/RETAIL.)
BOSTON-Bethesda, MD-based DiamondRock Hospitality Co. has completed its acquisition of the leasehold interest of 100,000 sf of retail space in a building attached to the Westin Boston Waterfront Hotel. The firm closed on the hotel purchase last week, as reported by GlobeSt.com.
According to a statement issued by the firm, DiamondRock plans to covert a portion of the property into meeting and exhibit space and lease the remainder for restaurant use.
The firm paid $330 million to acquire a leasehold interest in the 793-room hotel, which is attached to the new Boston Convention and Exhibition Center just last week. The deal also included the retail leasehold agreement and an option to purchase a leasehold interest in an adjacent property that would allow the new owners to build a 325-room hotel.
All three properties, which were owned by a joint venture comprised of Boston developers Stephen Karp, Steve Fischman and Joseph Fallon, have 99-year ground leases from the Massachusetts Convention Center Authority.
The acquisition was the first purchase in Boston by the two-year-old firm. DiamondRock also owns 20 hotel properties in 10 states and the Virgin Islands.
In a statement released following the Westin acquisition, DiamondRock said it expects to make about $20 million in tenant improvements to the retail space and expects the hotel and retail properties to generate $24.6 million this year and $31.8 million by 2008.
Officials from DiamondRock did not return calls from GlobeSt.com in time for deadline.
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