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Off-Market Deal Ropes 294-Room Radisson

RICHARDSON, TX-Carlson sells the hotel to a local investor planning a $2.5-million redo. Source Strategies says it's the best performer in its immediate neighborhood.

By Connie Gore | Updated on February 06, 2008

RICHARDSON, TX-In an off-market deal, a local hotel investor has acquired the 294-key Radisson Hotel from Carlson Hotels Real Estate Inc. Underwriting the acquisition is the hotel’s standing as the best performing property in its zip code and a $2.5-million renovation to pump up future returns.

Brokers aren’t discussing what the Plymouth, MN-based Carlson realized from the quiet trade of the 6.1-acre asset at 1981 N. Central Expwy. Austin-based Source Strategies Inc.’s vice president Doug Sutton says to build a comparable full-service hotel that it would cost $110,000 to $120,000 per key, excluding land costs. Dallas Central Appraisal District has the hotel assessed at $15.6 million or $53,388 per room. Given the deal’s dynamics, it’s a safe bet that HM-NM Inc., led by Al Mori of Dallas, paid at least $60,000 per room for the deed.

CB Richard Ellis first vice president Bert Stevens and vice president Bidjaan Kassam brokered the sale. Stevens tells GlobeSt.com that Carlson hadn’t tagged the asset as non-core, but two other Radisson-flagged hotel sales in the market showed enough demand that the seven-year owner was convinced to sell. But, he adds marketing was done “on a very confidential basis.”

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