(Carl Cronan is editor of Real EstateFlorida.)
MIAMI-Locally based Gencom Group has sold a portfolio of six Hyatt Summerfield Suites hotels to RLJ Real Estate Fund III LP. Gencom owned the hotels in partnership with Lehman Bros. Real Estate Partners. Prices and locations of the hotels involved were not immediately disclosed.
"The sale is consistent with our original business plan of identifying, repositioning and disposing of assets at significant returns," Karim Alibhai, founder and principal of Gencom Group, stated in a release. Gencom Group is an international investment and development firm specializing in hospitality and residential real estate sectors, with luxury and mixed-use projects under way totaling more than $6 billion.
Bethesda, MD-based RLJ Real Estate is an affiliate of RLJ Development LLC, a privately held hotel real estate investment company that is the largest African-American firm of its type in the country. The company, co-founded by Robert L. Johnson and Thomas J. Baltimore Jr., owns 121 hotels valued at approximately $2.6 billion.
"This is the first acquisition for RLJ Real Estate Fund III," Baltimore stated in a release. "The purchase is timely because the properties are just coming off complete renovations and conversions to the Hyatt Summerfield Suites brand."
RLJ Real Estate Fund III hass $1.2 billion in equity commitments from 16 institutional investors including several major public and corporate pension funds, financial institutions and a dominant hospitality entity, according to a company news release. Combined with leverage, the fund claims total purchasing power of nearly $4 billion.
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