MK Facilitates LaSalle Acquisition of Prime DC Hotel Property on behalf of AEW Capital Management
MCLEAN, VA, December 20, 2005. Molinaro Koger announced today their role as advisor to AEW Capital Management LP, a real estate investment advisory firm based in Boston, Massachusetts, in the sale of the Holiday Inn Downtown, Washington, DC, to LaSalle Hotel Properties of Bethesda, Maryland, for $44.6 million. One of Washington, DC's leading owners of upscale independent properties, LaSalle plans to invest more than $21 million in a renovation and rebranding of the hotel as an independent, high-style luxury property. AEW sold the property on behalf of AEW Partners IV, L.P, a real estate opportunity fund managed by AEW.
"LaSalle is the ideal acquirer of this hotly contested asset, given their successful history of purchasing assets and directing inspired reconcepts," commented Mark Morris, Senior Vice President, of Molinaro Koger, who structured the transaction.
"AEW timed their divestment well, understanding that this asset would be of significant interest to buyers capable of capitalizing on its excellent location in one of the nation's top business travel markets. Given their well-timed disposition, investment groups in the U.S. and abroad competed to acquire the asset," said Mr. Morris.
With 212 guestrooms, a signature rooftop pool and street-level restaurant, the Holiday Inn Downtown contains a variety of highly attractive elements. The hotel is located on Thomas Circle, in the heart of downtown Washington, DC, within a short walk of the White House, Washington Convention Center and the Smithsonian Museums.
"The DC market continues to be one of the strongest markets in the nation due to government related travel, tourism and associations that generate year-round revenues," remarked Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "Upon completion of the renovation and repositioning program, the hotel will be a great addition to our DC Collection. The hotel is at the center of many demand generators and will benefit from being one of the premier luxury assets in Washington, DC."
"Clearly this market offers a premium on rate, rewarding fresh and luxurious lodging concepts. LaSalle understands this market very well and completely understood the potential in this asset," said Mr. Morris. "This transaction was the result of a seller who recognized the strength of the current disposition market and a buyer with the vision to discern hidden opportunity."
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