Transaction is example of nationwide trend of sale-leaseback deals
Phoenix, July 17, 2018 – Colliers International in Greater Phoenix represented Byrd Hotel Group in finalizing a $20 million sale-leaseback transaction involving four hotel properties in Goodyear, Arizona. The deal with Kawa Capital Management of Florida is an example of the growing sale-leaseback trend in the industry, allowing owners to monetize properties while continuing to operate hotel assets.
“While sale-leasebacks in the hospitality space have become more common across the U.S., this is the first transaction we have seen in a while here in Arizona,” said Jon Grantham with Colliers International. “The seller was able to maximize payout, as well as execute a defeasance of his cross-collateralized CMBS. This allowed the seller to prune his portfolio and dispose of a now free and clear asset to utilize otherwise stagnant capital.”
Byrd Hotel Group of Goodyear sold the four properties to Kawa Capital Management. Grantham and James Meng of Colliers International represented the seller in the transaction. Kawa was self-represented.
The properties included in the transaction include:
- Red Lion Inn & Suites at 1313 N. Litchfield Road – 90 rooms
- Hampton Inn & Suites at 2000 N. Litchfield Road – 110 rooms
- Holiday Inn & Suites at 1188 N. Dysart Road – 100 rooms
- Residence Inn at 2020 N. Litchfield Road – 78 rooms
The four limited and full-service hotels consist of a total of 441,967 square feet of space on approximately 10.14 acres of property. All were part of the Byrd Hotel Group, formerly doing business as Byrd Enterprises of AZ, Inc. The company selected the Phoenix/Goodyear market because of its strategic growth opportunity to build near the fast-growing Phoenix metro area. Since 1996, Byrd has developed, owned and operated nine hotels.
“We have long-standing relationship with this seller and I have personally watched their family’s portfolio successfully grow,” said Meng. “Kawa Capital was a great fit for the Byrd family; and with the sale-leaseback, the seller’s portfolio will continue its healthy expansion. There are many great things ahead for our client.”
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 12,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn.
Colliers International in Greater Phoenix has served clients locally and globally for more than 35 years.