PHOENIX — Berkadia’s Hotels & Hospitality team completed the sale of three hotel properties in Arizona this past December totaling $80.1 million. Managing Director Kyle Stevenson and Senior Director Spencer Scott arranged the sale of the Element by Westin Sedona, the Element Chandler Fashion Center, and the Arroyo Roble Hotel & Creekside Villas on behalf of Scottsdale-based Glacier House Hotels. The deals closed on December 10, 11, and 12, respectively.
“It has been a pleasure to work with Glacier House to help them execute a strategic divestment of a select portfolio of hotel properties,” said Stevenson. “We’ve worked closely with them to identify unique qualified buyers for different elements of their portfolio and we look forward to continuing our partnership.”
The latest sale represents the fifth transaction—and over $119 million in value—that Berkadia’s Hotels & Hospitality team has completed on behalf of Glacier House Hotels since the team was enlisted to market a 15-property portfolio in January 2019. The team is actively engaged in the sale of the remaining properties in the portfolio.
“The California dream is alive in Arizona as both tourism and business travel to the ‘Silicon Desert’ converge to sell out room nights,” said Scott. “Of top 25 U.S. hotel markets, Phoenix provides a uniquely sunny price point paired with regional lifestyle amenities further fueling the interest of industries and hotel investors away from coastal costs, especially at this point in the cycle.”
“Each of these hotels is in an enviable position, and particularly those located in Sedona with annual property-specific occupancy and ADRs trending over 80 percent and $200 respectively,” continued Scott. “With the sale of these properties, Glacier House is able to reap value created with their strategic portfolio while offering precedent-setting opportunities to new investors.”
The Element by Westin Sedona is a new 117-room hotel opening in January 2020. Located at 6601 State Route 179 in Sedona, Ariz. the hotel is near Red Rock Mountains within the Village of Oak Creek and adjacent to Lisa Dahl restaurant concept, Butterfly Burger. It was sold at Certificate of Occupancy to a buyer based in Montana in a 1031 exchange.
The Element Chandler Fashion Center is located at 44 South Chandler Village Drive in Chandler, Ariz., adjacent to the Chandler Fashion Center—one of the largest malls in the Phoenix Metropolitan area. The property has 107 guestrooms with fully equipped kitchens, free WiFi, complimentary breakfast, a 24-hour fitness center, and an outdoor pool.
The Arroyo Roble Hotel & Creekside Villas sold for $31.5 million to Ensemble Real Estate Solutions—the second-highest price per room for a hotel sold in Arizona in 2019. Located at 400 North State Route 89A, the 66-room hotel has private guest balconies and more than 600 feet of frontage on Oak Creek. Amenities include complimentary breakfast, indoor/outdoor pools, an extensive exercise facility, indoor/outdoor whirlpools, steam, sauna, pool tables, tennis, and indoor, air-conditioned racquetball courts.