WICHITA, Kan.—Value Place announced that it has acquired 22 operating properties owned by its largest franchisee, a partnership comprised of Angelo, Gordon & Co. and other prominent real estate investors. The $115 million purchase price includes the assumption of existing debt. The acquired properties, in Austin, Columbus, Phoenix, Salt Lake City, Denver, Indianapolis, Washington, DC, Florida and elsewhere, strategically enhance the brand and improve operating efficiencies in attractive growth markets.
The $115 million sales price represents an approximately 9 percent capitalization rate on the trailing 12-month EBITDA, after reserve, collectively generated by the properties.
“This acquisition continues the growth of the Value Place brand, and is part of our larger plan to develop and acquire properties corporately, upgrade our properties to maintain high quality standards, and accelerate the growth of our franchise network,” said Dan Weber, chief executive officer of Value Place. “These twenty-two high quality properties are in many of the same major markets as our existing portfolio, which allows us to leverage marketing and management resources.”
Value Place now owns 74 of the 185 franchise locations and develops, franchises, and manages Value Place properties throughout the U.S.
Value Place’s growth strategy was recently endorsed by virtue of a $100 million capital investment from Lindsay Goldberg LLC, a New York-based private equity firm with $10 billion of total capital under management.
The seller is a partnership between Angelo, Gordon & Co., a New York-based, privately-held registered investment advisor currently managing approximately $24 billion in assets, and Belvedere Capital Real Estate Partners, a private investment firm that, along with various institutional and private partners, has invested in more than 10 million square feet of office, industrial, and retail properties.
Value Place is focused on strategic expansion across the U.S., and recently committed to invest $60 million to develop new properties in the Boston, Mass. market. Over the next three years, expansion plans include the acquisition of land to build corporate-owned hotels in additional metropolitan markets, including Atlanta, Cleveland, Denver, and southeast Florida.