Moody National REIT I is poised to purchase the Hilton Garden Inn Austin NW/Arboretum located in busy Austin, Texas.
For a purchase price of $29,250,000, excluding acquisition costs, the non-traded REIT will acquire 138 rooms, an indoor swimming pool, and 1,400 square feet of flexible meeting space. Rooms include amenities such as HDTV and in-room hospitality centers with refrigerators.
Opened in 2002, the Hilton Garden Inn hotel sits on 3.4 acres of land and is located near corporate offices such as Apple, IBM, and Motorola. North of the city center and off Highway 183, the hotel is also close to the Arboretum at Great Hills, the University of Texas, Sixth Street, and Lake Travis.
“This asset fits perfectly within our existing portfolio being a premium brand in a market that’s slated to outperform the majority of other major metropolitan areas,” commented Brett Moody, Chairman of the Board and CEO of Moody National Companies. He continued, “This particular asset located in a great sub-market, the Arboretum/The Domain Shopping Mall, establishes the environment for this asset to outperform Austin as a whole.”
Moody National REIT I purchased another Austin Hilton Hotel at the end of last year with the acquisition of Hampton Inn South Austin Airport.
The REIT targets market inefficiencies, such as constrained supply coupled with increased demand. Austin fits the bill as it provides a market that is rich in culture, has a skilled employment base, and high population growth, in addition to being a seat of government and a center of education and technology. All factors signify a hotel demand from business and tourist travelers alike.
The REIT intends to implement a Property Improvement Plan once it acquires the hotel to ensure compliance with Hilton Garden Inn brand’s latest standards.
Sponsored by Moody REIT Sponsor, LLC, Moody National REIT was formed in 2008. As of June 30, 2014, the Company’s portfolio consisted of 6 hotels and a 74.5% joint venture interest in a mortgage note secured by the Hyatt Place Grapevine hotel.
This latest acquisition in Austin is subject to conditions to closing that include the sale of a enough shares of the REIT’s common stock to fund a portion of the purchase price, the REIT’s ability to secure financing for the acquisition, and customary conditions related to the asset.