OCALA, FL—Ocala isn't the first market you think of when you consider Florida hotel opportunities, but a private investor from Fort Lauderdale, FL is betting on a budget brand there. The investor snapped up a 152-room Quality Inn for $3.5 million

Jonathan Gerszberg, a senior associate, Ahmed Kabani, a senior associate, and Dominic Vito, an associate, in Marcus & Millichap's Miami office, represented the seller, a limited liability company from Miami. David M. Greenberg, a vice president investments, in the firm's Fort Lauderdale office, found the buyer.

“Last year we had great interest in the Hampton Inn we sold, with more than 10 offers,” Kabani says. “Investors see Ocala as a growing market because it is central for tourists and business travelers.”

The Quality Inn Ocala is a recently converted exterior corridor hotel in the thriving Ocala market. The property has 152 rooms and was converted from a Hampton Inn to a Quality Inn in December of 2012

“The seller of the Quality Inn did a fantastic job repositioning a distressed asset, and felt that the market was right for them to capitalize on the value they had created,” Vito says. “We generated six offers and ultimately selected a buyer who saw additional value in the property.”

Despite being constructed in 1987, he says the hotel is in great condition. Quality Inn is located at 3434 Southwest College Road in Ocala. It sits on about 3.25 acres of land directly off Interstate 75.

“The purchaser had been interested in the returns generated by hotels, but had no prior experience,” says Greenberg. The buyer was a first-time hotel investor, with experience in multifamily assets.

“We worked closely with him, helping the purchaser understand all facets of hotel operations,” Greenberg says. “This empowered the purchaser to feel comfortable with the investment, and the opportunity therein.”