Local investor purchases property with plans to improve operations in dynamic market
Phoenix, June 25, 2018 – Colliers International in Greater Phoenix negotiated the $7.25 million acquisition of Comfort Suites Old Town Scottsdale at 3275 N. Drinkwater Boulevard in Scottsdale, Arizona, by a private investor in Scottsdale.
The investor, who specializes in hospitality properties, plans to update the operations of the hotel and take advantage of quality market conditions in the Old Town Scottsdale hotel industry. The Comfort Suites Old Town Scottsdale is situated on 1.32 acres of land and includes 32,436 square feet of space. The 60-room suites hotel was constructed in 1995.
The Scottsdale investor purchased the property from Colony North Star REIT, with offices in Los Angeles and New York. James Meng and Jon Grantham of Colliers International in Greater Phoenix negotiated the purchase on behalf of the buyer. Colony North Star represented itself in the transaction.
“This is a great example of the Colliers International Hotel team working with institutional ownership to provide an otherwise unobtainable opportunity to the private capital pool,” said Meng.
According to Meng, Phoenix is experiencing pressure from both fronts for pricing of assets. “We have an expanding 10-year bond rate on one side and cap rates compressing from out-of-state buyers seeking higher spreads than what they would receive in West Coast gateway cities.”
“Utilizing our institutional connections and experience in operations, we were able to connect the bridge by providing Colony North Star a great price and the private investor the opportunity to capitalize on a newly renovated hotel in one of Phoenix’s hottest submarkets,” said Grantham.
Colony North Star currently has assets under management of $43 billion and manages capital on behalf of stockholders, as well as institutional and retail investors in private funds, non-traded and traded real estate investment trusts and registered investment companies. In addition, the company owns North Star Securities, LLC, a captive broker-dealer platform which raises capital in the retail market. The firm maintains principal offices in Los Angeles and New York, with more than 500 employees in offices located across 18 cities in 10 countries.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services 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. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. 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 has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
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Colliers International in Greater Phoenix has served clients locally and globally for more than 35 years.