PHILADELPHIA—Lubert-Adler of Philadelphia, Penn., has sold two hotels comprising 647 keys to New York City-based Carey Watermark Investors for a total of $156.6 million. The most recent sale, which closed this week, was the 400-room Marriott Raleigh City Center, which was sold for $83 million. The 248-key Hutton Hotel in Nashville, Tenn., sold earlier this summer for $74.3 million, setting a record sale price of roughly $300,000 per key for the Nashville hotel market.
The Marriott Raleigh City Center was developed through a public-private partnership with the city of Raleigh, N.C., in conjunction with the city’s new 500,000 SF convention center. The City of Raleigh contributed $20 million for construction of the hotel’s 14,900 square feet of public meeting space, as well as below-market parking arrangements and a favorable, long-term ground lease. Noble Investment Group was Lubert-Adler’s operating partner.
In Nashville, Lubert-Adler and Amerimar Enterprises acquired a 170,000 square-foot Class C office building located in the city’s West End submarket in 2007. Through an adaptive re-use strategy, Lubert-Adler and its operating partner opened Hutton Hotel in February 2009.
“With the closing of the sale of the Marriott Raleigh City Center, Lubert-Adler and its partners have completed two sales, totaling $156.6 million to Carey Watermark in 2013,” said Dean Adler, CEO and co-founder, Lubert-Adler Partners, L.P. “Along with the Hutton Hotel sale, this transaction is representative of Lubert-Adler’s investment strategy of creating cash-flowing assets through significant capital infusion.”