PARSIPPANY, NJ-The Lightstone Group has acquired the senior mortgage on the 151-room Marriott Courtyard hotel on Route 46 here for the discounted price of $9.3 million, approximately 52% of the unpaid balance.
The note was acquired from LNR Partners through an auction held by Auction.com, explains Ryan Colbert, an acquisition officer at New York City-based Lightstone Group. “The property was in very good shape,” Colbert tells GlobeSt.com, though it does require some cosmetic work to transform its lobby dining area to Marriott’s new Bistro concept.
The hotel, which is under both Marriott management and flag, was built in 2001 and underwent extensive lobby and guestroom renovations in 2006 and 2008. The three-level property has 146 guest rooms, five suites and three meeting rooms. Lightstone now is the lender on the senior mortgage, and hopes to work with the borrower for the remainder of the investment, Colbert says.
The deal marks Lightstone’s third note acquisition collateralized by a hotel property and its fifth hospitality acquisition since 2007. The other transactions were: the senior mortgage acquisition secured by the Holiday Inn Express Hotel & Suites Tower Center in East Brunswick, NJ; the senior mortgage secured by the 141-room Fairfield Inn in East Rutherford, NJ; a 125-room limited-service extended-stay TownePlace Suites by Marriott in Metairie, LA; and the 366-room full-service CoCo Key Hotel & Water Resort in Danvers, MA.
“This newest acquisition complements our existing value-add New York City-based hospitality portfolio,” Colbert says. “Hospitality works to the extent you get involved with high quality assets at the right price."
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