NEW YORK—NHCohen Partners has completed the equity raise for the acquisition of the Comfort Suites Raleigh Durham Airport/RTP hotel, situated mid-way between Raleigh and Durham in North Carolina, just two miles from Research Triangle Park and five miles from Raleigh-Durham International Airport.
The hotel lies along Interstate-40, the primary commercial route through the Research Triangle area. Also nearby are Duke University, the University of North Carolina at Chapel Hill, and other educational institutions and corporate demand generators.
The property is a modern five-story, 125-key all-suites select service hotel managed by Interstate Hotels and Resorts.
The acquisition, for $8.5 million, was sponsored by LBP Hotels, a venture headed by Paul Stern, a veteran in the hospitality investment space. The seller was a private investment group.
Asset management will be provided by Waramaug Hospitality, a private hotel firm focused on premium branded hospitality assets throughout the United States which has co-invested in the ownership.
Ned H. Cohen, president of NHCohen Partners, says members of the limited liability company will receive an annualized preferred return of 8 percent. The sponsor arranged conservative long-term institutional financing on favorable terms.
The sponsor and its affiliates, with more than 25-years’ experience in real estate investment, have interests in 40 hospitality properties, focusing on investing in income-producing hotels on behalf of family offices and high-net-worth individuals. Cohen sees a very attractive potential for well-located hospitality properties in growth regions, exemplified by this investment. Select service hotels as an asset class have historically performed well both during inflationary and slower growth periods due to their efficient operating model.
Stern of LBP Hotels says, “NHCohen Partners facilitated the assembly of the equity portion for this investment, which should provide investors with steady and increasing dividends, partially tax-sheltered, and capital appreciation.”
The Comfort Suites Raleigh-Durham Hotel was developed in 1998 and underwent extensive renovations over the past three years, including refurbishment of public areas, new guestroom furniture, and upgrades and replacements of mechanical systems and equipment. The hotel’s amenities include free airport transportation, complimentary breakfast, and free wi-fi, refrigerator, and microwave in each oversized guest room and suite. The hotel also includes a fitness center, guest laundry, an outdoor pool, and complimentary parking.
