Legendary Capital Sponsors Residence Inn Fort Collins in UPREIT Acquisition
Legendary Capital has sponsored the acquisition of the 113-room Residence Inn Fort Collins in a $17.7 million UPREIT transaction.
Legendary Capital has sponsored the acquisition of the 113-room Residence Inn Fort Collins in a $17.7 million UPREIT transaction.
The deal utilized Legendary Capital’s “equity preservation UPREIT” structure in which the Residence Inn owners contributed the property in exchange for a special class of transition partnership units, allowing for the potential preservation of the contributor’s equity as the property re-stabilizes.
The consideration included a payoff of the $11.5 million loan secured by the Residence Inn, $5.6 million in T-units to the contributor. This is Legendary Capital’s second transaction with the contributor.
The property is located in the Fort Collins-Loveland metropolitan statistical area, which has an estimated population of 310,500, including 166,000 in Fort Collins proper. The city is home to Colorado State University, which has an enrollment of around 35,000.
“The Fort Collins market hits that sweet spot as a mid-size metro,” said Corey Maple, chief executive officer. “It has all of the draws of a big city while avoiding some of the volatility we see in major urban centers.”
This is the seventh transaction Legendary Capital has sponsored using its equity preservation UPREIT structure since February 2021. Previous deals include the Courtyard by Marriott in Aurora, Colorado, the Holiday Inn El Paso Sunland Park, the Hilton Garden Inn Houston, the Sheraton Northbrook in Illinois, the Hampton Inn Fargo, and the Fairfield Inn & Suites Denver in Lakewood, Colorado. In addition to these EPU transactions, Legendary has also taken the contribution of the Courtyard in El Paso through a 721 UPREIT.
Through its affiliated entities, Legendary Capital has acquired more than 30 hotels, primarily targeting 80-to-200 room limited-service, select-service, full-service and extended-stay hotels in America’s heartland. The company is headquartered in Fargo, North Dakota.
