Hodges Ward Elliott, the real estate capital markets advisor, announced it has arranged the fee-simple sale of the entire hotel portfolio for Avatar Hotel Group, comprised of three select service hotels in Texas with 280 rooms in total, to Wolfgramm Capital. Wolfgramm Capital also purchased and assumed Avatar’s management company.
In addition, HWE negotiated a separate transaction on behalf of Avatar selling a nearly three-acre development site in Plano, Texas pre-approved for a Home2 Suites development, to another buyer.
An HWE team led by Austin Brooks advised the seller in both transactions. The investment opportunity was initially marketed by HWE as a four-property portfolio but was ultimately awarded to two buyers and split into separate transactions.
The three hotels in the Texas portfolio include the 109-room Fairfield Inn & Suites Waco North built in 2004; the 83-room Fairfield Inn & Suites Marshall built in 2005; and the 88-room Holiday Inn Express & Suites Dallas South Desoto built in 2007. The development site is just over 2.95 acres and is situated along the President George Bush Turnpike in Plano, Texas.
“HWE conducted a comprehensive marketing process on behalf of Avatar for the three hotels and the development site which garnered substantial interest,” said Austin Brooks of Hodges Ward Elliott in a statement. “After a competitive bidding process with multiple offers, we were able to identify separate buyers for these investment opportunities and we’re pleased to close the sale of this portfolio as two transactions.”
“It was a great experience being a part of the history of these beautiful assets and managing them for the past 5 years,” added Frank Tenadu, Managing Partner & VP of Operations for Avatar. “We’re particularly grateful and excited about the enormous growth opportunities Wolfgramm Capital brings to our entire team. Austin and the HWE team did an excellent job ensuring a smooth process. He was very professional and dedicated throughout the entire process.”
The three recently renovated hotel properties each benefit from highly visible locations near notable demand drivers. The properties are situated within the Texas Triangle, a booming mega region anchored by four major metropolitan areas including San Antonio, Austin, Dallas-Fort Worth, and Houston. The area has seen a dramatic economic and demographic growth and represents the economic engine of the Southwest U.S. as well as home to over 20 million residents.
Hodges Ward Elliott is a real estate capital markets advisor. HWE’s multi-disciplined platform includes commercial, hotel and debt capital markets teams, with offices in Atlanta, Chicago, Dallas, Los Angeles, New York, Miami, Washington D.C., and London.