W.P. Carey REIT Buys Charlotte Marriott City Center
Carey Watermark Investors 2 Inc., a publicly registered non-traded real estate investment trust, purchased the Charlotte Marriott City Center in North Carolina for approximately $170 million.
The 19-story building is comprised of 446 guest rooms and 20,000 square feet of meeting space, and 13 breakout areas, including a 9,100-square foot ballroom. More than $40 million of capital improvements were completed in 2016 which added eight guest rooms, five food and beverage outlets, and a fitness center.
The Charlotte Marriott City Center sits at one of the busiest intersections in Charlotte’s central business district, surrounded by 16 million square feet of office space. Several Fortune 500 companies, including Bank of America, Duke Energy and the East Coast operations of Wells Fargo, are located in the district.
CWI 2 entered into a long-term management agreement with Marriott International and the hotel will continue keep its Marriott brand affiliation and management.
“With the strength of its location in the heart of the CBD, one of the highest growth lodging markets in the US, we believe the property is not only well positioned to deliver attractive current cash flow but also to benefit from the ongoing strength of the local economy,” said Michael Medzigian, chief executive officer of CWI 2.
Carey Watermark Investors 2, invests primarily in the lodging and lodging-related sectors, went effective in February 2015 and is expected to close at the end of 2017. As of March 31, 2017, the company has raised $835 million in investor equity, according to Summit Investment Research, and owns a portfolio of 10 properties with a total investment cost of nearly $1.3 billion.
