Procaccianti Hotel REIT Inc., a publicly registered non-traded real estate investment trust that invests in hospitality properties, has purchased the Cherry Tree Inn and Suites, a 76-room hotel in Traverse City, Michigan, for $15 million.
Located at the base of Grand Traverse Bay, the property includes a mix of one- and two-bed studio rooms, as well as suites that range in size from 550 to 1130 square feet. Amenities include private bay frontage with onsite watercraft rentals, beachfront areas including fire pits, and lounge chairs, an indoor and outdoor pool and spa, infrared sauna, and exercise room.
Procaccianti Hotel REIT funded the acquisition with net proceeds from its public offering and a $4 million bridge loan from an affiliate of Procaccianti Companies Inc., the REIT’s sponsor.
Procaccianti Hotel REIT’s $550 million initial public offering launched in August 2018 to invest in hospitality properties consisting primarily of select-service, extended-stay, and compact full-service hotel properties throughout the United States. As of March 31, 2021, the company owned interests in four select-service hotels.
Including its private offerings, the REIT has received total gross proceeds of approximately $54.2 million, including $38.8 million in its primary offering, as of June 8, 2021.