Lightstone Value Plus REIT III Buys Two Hilton Hotels Near Salt Lake City and Seattle
Lightstone Value Plus Real Estate Investment Trust III Inc., a publicly registered non-traded REIT, purchased two Home2 Suites by Hilton for a combined $47.3 million.
The 125-room Home2 Suites located in the Salt Lake City suburb of South Jordan, Utah was purchased for $19.3 million. The hotel opened in 2013 and is the exclusive hotel within the RiverPark Corporate Center, a 120-acre business park comprised of 15 buildings totaling 1.7 million square feet of office and retail space. The hotel is also located near Alta Ski Resort, a major recreational destination in Utah.
The 139-room Home2 Suites, located in Tukwila, Washington, was purchased for $28 million. The hotel opened in 2015 and is situated five miles from the Seattle-Tacoma International Airport. Located 20 minutes south of downtown Seattle, several major companies maintain a presence in this area, including Boeing, REI, and Group Health Cooperative.
“We’re excited to expand our portfolio through these acquisitions in the Salt Lake City and Seattle markets,” said David Lichtenstein, chairman and chief executive officer of Lightstone. “These properties are strategically located in growing markets and bring a geographic diversity within LVPR III.”
Lightstone entered into a long-term franchise agreement with Hilton for both properties commencing upon acquisition. The properties will be managed by Island Hospitality and overseen by Lightstone’s hospitality division.
Lightstone Value Plus REIT III invests primarily in hotels, as well as in other types of properties and real estate related assets. The REIT, which currently owns a portfolio of seven properties, commenced its $300 million offering in July 2014 and has raised $68 million since inception.
