Mar 21 2016 | Article by: DI Wire
Lightstone Value Plus REIT III, a publicly registered non-traded real estate investment trust, purchased the Hampton Inn – Lansing in Michigan for $10.5 million, or $122,000 per room.
The 86-room select service hotel was built in 2013, and the company expects to invest $500,000 for renovations and improvements. An unrelated third party firm will oversee the management of the hotel, which will continue to operate as a “Hampton Inn & Suites” for a 15-year term.
The capitalization rate for the acquisition was approximately 12 percent, and company’s advisor received a 1 percent acquisition fee of $105,000.
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