Colorado Real Estate Journal - April 17, 2019
Affiliates of Blackstone Real Estate sold five TownePlace Suites by Marriott hotels in the Denver area, including one located in the historic A.B. Hirschfield Press building, to two different owners. The recently renovated 122-suite TownePlace Suites Denver Downtown at 685 Speer Blvd. sold for $27 million. The hotel is a redevelopment of a 1947 building that for many years housed one of the largest commercial printing operations in the Western United States. The buyer was Denver Dwtn Hotel DST, which records indicate is affiliated with Oak Brook, Illinois-based Inland Real Estate. The same buyer, through Denver West Hotel DST, bought the TownePlace Suites Denver/Federal Center at 800 Tabor St. in Golden for $17 million. The hotel features 106 guest rooms and is located just northeast of the Denver Federal Center, near the Union Boulevard corridor. New York-based Three Wall Capital bought the remaining three hotels in the Denver portfolio, which Blackstone had owned since 2015. They include: • TownePlace Suites Boulder Broomfield, a 150-suite hotel at 480 Flatiron Blvd. The hotel sold for $11.65 million, according to Broomfield County records. • TownePlace Suites Denver Southeast, which contains 112 rooms and is located at 3699 S. Monaco Parkway in Denver. The price was $10.5 million. • TownePlace Suites Denver Tech Center, a 94-room hotel at 7877 S. Chester St. in the Denver Tech Center. Records show the hotel sold for $6.7 million. Three Wall Capital said on its website the three hotels “show in strong physical condition, as extensive PIP (property improvement plan) renovations were completed at the properties in late 2018. Given the hotels’ extended stay positioning, the properties offer spacious guest rooms with full kitchenettes, complimentary breakfast, complimentary Wi-Fi, an outdoor swimming pool, business center and fitness center.” “The hotels benefit from their strategic locations within thriving suburban submarkets of Denver,” the company said. “The Broomfield market is undergoing significant growth spurred by corporate relocations and rapid development, resulting in the market emerging as an attractive mixed-use community. Southeast is conveniently situated equidistant from downtown Denver and the Denver Tech Center business corridor, providing the property with well-diversified sources of demand. The Denver Tech Center asset sits within the Panorama Business Park, one of five business parks that comprise the southeast Denver business corridor. “The hotels are well situated on or just off major area thoroughfares, adding to the properties’ ability to attract a varied demand base,” Three Wall stated. HREC Investment Advisors handled, but declined to discuss, the transactions. Neither Three Wall Capital nor Inland Real Estate responded to requests for comment.