BETHESDA, Md., Aug. 23, 2016 (GLOBE NEWSWIRE) -- Condor Hospitality Trust, Inc. (NASDAQ:CDOR), a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, today announced that it has closed on a joint venture acquisition of the 254 room Aloft Atlanta located in downtown Atlanta at 300 Spring Street NW, Atlanta, GA 30308. Condor entered into a joint venture agreement with Three Wall Capital to acquire the hotel. Through its operating partnership subsidiary, Condor will own 80% of the joint venture with Three Wall Capital owning the remaining 20% of the joint venture. The purchase price for the hotel is $43,550,000. The hotel will be managed by Boast Hotel Management Company, LLC, an affiliate of Three Wall Capital.
“The Atlanta Aloft is a premium quality, select service hotel meeting the new investment strategy of the company that was sourced off-market and that will be managed by an affiliate of the party that introduced the investment," Bill Blackham, Condor’s Chief Executive Officer stated. “While the largest concentration of new acquisitions meeting our investment strategy will be located in the top 20 to 60 MSAs, we will pursue assets outside this MSA range when unique or compelling investment opportunities become available. At a per key acquisition price of approximately $170,000 and with, in our view, an attractive joint venture structure in which Condor earns a 10% preferred return, we believe the Aloft Atlanta represents such an opportunity,” Blackham continued.
"We are pleased to partner with Condor in the acquisition of the Aloft Atlanta which is attractively located adjacent to AmericasMart in the center of the city’s CBD," Alan Kanders, Three Wall Capital’s Managing Director stated. "Three Wall Capital targets investments which exhibit significant upside potential, and through Three Wall Capital’s affiliated management company, Boast Hotel Management Company, LLC, we are focused on achieving this upside,” Kanders continued.
Refer to the Company’s Form 8-K to be filed with the Securities and Exchange Commission for a further description of the terms of the transaction.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NASDAQ:CDOR) is a self-administered real estate investment trust incorporated in the state of Maryland that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels. The company currently owns 30 hotels in 15 states. Condor’s hotels are franchises of a number of the industry’s most well-regarded brand families including Hilton, Marriott, InterContinental, Starwood, and Choice. For more information or to make a hotel reservation visit www.condorhospitality.com.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the company’s filings with the Securities and Exchange Commission.
Contact for Condor Hospitality Trust, Inc.:
Chief Financial Officer and Senior Vice President
About Three Wall Capital LLC
Three Wall Capital (TWC) was founded in December 2008 and is focused on capital commitments in hospitality related real estate assets. Three Wall Capital is led by former Lehman Brothers investment banker, Alan Kanders, and is specifically focused on investments which exhibit significant upside potential. TWC has completed over $300 million in transactions during the past 18 months in both advisory and principal investor capacities. TWC investment activities include the Mayflower Grace Resort and Spa, The Quin Hotel New York, the Hardage Portfolio, The Coral Beach & Tennis Club, the Holiday Inn Secaucus Meadowlands and a select service portfolio with hotels in Brooklyn. Boast Hotel Management Company, LLC, an affiliate of Three Wall Capital, will manage the Aloft Atlanta Downtown. Boast currently has properties in metro New York City under management.
Contact for Three Wall Capital, LLC:
Condor Hospitality Trust, Inc. has provided, and is solely responsible, for the information in this press release with respect to Condor. Three Wall Capital LLC has provided, and is solely responsible for the information in this press release with respect to Three Wall.
Source:Condor Hospitality Trust, Inc.