FARGO, N.D.—Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of a two-property hospitality property portfolio in Fargo. The assets are a Holiday Inn and a Holiday Inn Express that together total 387 rooms. The portfolio sold for $30 million, which equates to more than $77,500 per room.
“The Holiday Inn is one of only two nationally branded, full-service hotels in Fargo and it has the state’s premier conference center,” says Shane Skubis, a senior director of Marcus & Millichap’s National Hospitality Group. “The Holiday Inn Express, which is on the same site, was fully renovated in 2014, and commands a 120 percent RevPAR premium to its competitive set.”
Skubis represented the seller, a private equity group based in Los Angeles and procured the buyer, a Fargo-based private real estate investor. Craig Patterson is Marcus & Millichap’s broker of record in North Dakota.
The hotels are located at the intersection of Interstate 29 and 13th Avenue South, directly across from West Acres Mall, the largest regional mall in North Dakota. The location is the prime retail corner in North Dakota and is close to all of Fargo’s demand generators, including North Dakota State University, Fargodome, and Hector International Airport.
The Holiday Inn has completed more than $10 million in renovations since 2000, including a complete remodeling of the guest rooms in 2006. Both hotels come with 15-year licenses that expire in 2030.