Legendary Capital, a sponsor of non-traded real estate investment trusts and other alternative investment offerings, has sponsored the acquisition of the 90-room Hampton Inn & Suites in Fargo, North Dakota in a $11.4 million transaction.
The deal utilized Legendary Capital’s “equity preservation UPREIT” structure, where the hotel’s owner contributed their property in exchange for a class of transition partnership units, allowing for the potential preservation of the contributor’s equity as the property re-stabilizes.
The property is located in the Fargo metropolitan statistical Area, which has a population of 250,000. Fargo’s population has experienced an almost 20 percent increase since 2010. The hotel is within a mile of the Sanford Medical Center, the only verified level 1 trauma center in the region between Minneapolis, Seattle, Denver, and Omaha.
“This location is really ideal in the Fargo market,” said Corey Maple, chief executive officer. “Sanford Medical Center is a true regional hospital that covers a broad area, and the Hampton Inn & Suites is one of its closest hotels.”
The company noted that the change-of-ownership property improvement plan will be completed after contribution.
“The property will be brought up to the latest Hampton standards, and we know guests will appreciate the refresh,” said Dave Durell, chief investment officer. “We envision this property as a home away from home for guests, especially for those visiting the Sanford Medical Center.”
KAJ Hospitality, the current management company, will continue to manage operations at the property.
Headquartered in Fargo, North Dakota, Legendary Capital has acquired 29 hotels through its affiliated entities and primarily targets 80-to-200 room limited-service, select-service, full-service and extended-stay hotels in America’s heartland.