An additional $4 million will be invested to renovate the property, which is located at 4095 Powder Mill Rd., near the University of Maryland's campus. Crescent will oversee the renovations, which will take six months, and operate the hotel.
"This is a property with a strong real estate value, strong growth potential, but has not received individual operator attention for some time," Michael George, Crescent president and CEO tells GlobeSt.com. Also, he adds, there is limited supply in the area, which is expecting to see increased demand for hotel space with the upcoming relocation of the Food and Drug Administration offices at the White Oak site some 4.5 miles away.
The Sheraton College Park acquisition was an off-market transaction, George says. "Pyramid Advisors had never intended to hold it for long." The company acquired it late last year as part of a portfolio deal, he says.
This is the first acquisition Crescent has done with Carlyle. George says the two firms are actively looking at additional investment opportunities. He declined to disclose additional details about the partnership.
One possible model might be the partnership between Carlyle and the Davidson Hotel Co. Last month the two firms joint ventured to acquire the Houston Sofitel Hotel from Accor Worldwide, as reported by GlobeSt.com. "In that transaction Davidson holds a minority interest in the partnership and will manage the property," Vikram Antin, an associate in Marcus & Millichap REIBC's National Hospitality Group points out.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
