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Moody REIT I Locks In Big Return on Hotel Sale

Moody National REIT I Inc., a publicly registered non-traded real estate investment trust, sold the TownePlace Suites Hotel in Newark, California to Holiday Garden SF Corp. for $24.5 million.

Originally acquired in June 2014 for $10 million, the TownePlace Suites Newark is positioned on the edge of the Silicon Valley in the San Francisco Bay area of Northern California. The area is home to many of the world’s most innovative corporations, including Google, Apple, TESLA, and Facebook, as well as an array of startup companies.

Net sales proceeds from the transaction equaled approximately $17,450,000, providing an approximately 250 percent equity return to the REIT.

Moody National Hospitality Management Company managed the asset while also completing a $1.4 million property renovation. During the holding period, Revenue per Available Room (“RevPAR”) increased 28.5 percent.

In July, The DI Wire reported that Moody National REIT I entered into an agreement to sell the TownePlace Suites property.

Moody National REIT I Inc. is a real estate investment trust that owns select-service hotels in major markets across the United States. The REIT is sponsored by Moody REIT Sponsor LLC, an affiliate of the Moody National Companies, which is a full-service commercial real estate company inclusive of mortgage, development, realty and title divisions. Founded in 1996, Moody National Companies has managed more than $2 billion in commercial real estate.

 

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