FARGO, North Dakota—Legendary Capital has sponsored the acquisition of the 90-room Courtyard El Paso Airport in a $15.2 million transaction. The deal was materialized through a 721 UPREIT in which previous ownership of the property contributed their equity in exchange for common limited partnership units.
Courtyard contributor Sean Hawkins says he appreciated Legendary Capital’s flexibility throughout the transaction. “Legendary Capital brings creative solutions and ideas in a time when it is needed most, and we are pleased with the outcome of our second transaction with them,” he said. “The Legendary team brings a depth of industry knowledge and experience, and we are happy to be part of the family.”
Director of Acquisitions Andrea Scott says Legendary Capital’s agility made it possible to complete the Courtyard transaction, which used a different deal structure than the prior transaction with the contributor. “This was Legendary Capital’s second transaction with this contribution group, and we are proud to have found a deal structure that meets the needs of their disposition strategy specific to this property,” she said. “The Courtyard recently completed a property improvement plan, making it an excellent candidate for a 721 exchange.”
“The momentum just keeps building,” said CEO Corey Maple. “Together with our Equity Preservation UPREIT program, we have sponsored the acquisition of six properties while providing potential tax benefits to our contributors. Our program remains agile to ensure we are meeting the needs of each deal.”
The property is located in the El Paso metropolitan statistical area (MSA), which has a population of 840,000. Home to University Medical Center, the only level-1 trauma center in the region, El Paso serves as a medical hub to western Texas and southern New Mexico. It is also home to the William Beaumont Army Medical Center, which provides medical care for active and retired military personnel within Arizona, New Mexico, and Texas.
The Courtyard is located near the El Paso International Airport and the Fort Bliss military base. The airport saw 3.5 million passengers in 2019. Fort Bliss is home to over 38,500 active-duty military personnel.
“We’re proud to announce the acquisition of another El Paso hotel,” said Chief Investment Officer Dave Durell. “We love El Paso for many reasons. International trade, health care, and leisure demand generators combine for a truly diverse market.”