An Ohio-based real estate investment firm has picked up a Central Perimeter hotel for its debut in Metro Atlanta.
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An affiliate of Starwood Capital Group sold the 275-room Le Méridien Atlanta Perimeter to Whitestone Cos. for an undisclosed sum. The deal for the 12-story hotel directly across from Perimeter Mall in Dunwoody marks Whitestone’s first acquisition in Metro Atlanta, according to a press release.
“Atlanta is a market we have been eyeing for quite some time. As with most things, it is about timing,” Whitestone CEO Jay Batra said in a statement. “With the Le Meridien, we believe we have found an incredible asset in a great location with considerable upside potential.”
Hunter Hotel Advisors Senior Vice Presidents Tim Osborne and Spencer Davidson brokered the all-cash sale. Whitestone has tapped Shaner Hotels to manage the property, with plans to refurbish the public spaces.
Starwood, through the entity Hotel 111 Perimeter Center LP, purchased Le Méridien in 2016 from Rockbridge Capital for more than $40.6M, according to DeKalb County property records.
That was the same year Starwood sold its hotel empire, Starwood Hotels & Resorts Worldwide, to Marriott International for roughly $13B.
Rockbridge acquired the hotel in 2012 when it was branded as the W Atlanta Perimeter, a Starwood hotel flag. Rockbridge converted it to the Le Méridien brand the next year after a $20M renovation.
The hotel was assessed at a $25.6M valuation at the time of Starwood's purchase, according to DeKalb County records, which pegged the hotel’s value at $27M last year. It reached a peak value in 2019 when the county assessed it at $40.7M, but the pandemic drastically reduced its worth. The Atlanta hotel market, while improved, still faces headwinds.
It was unclear if the hotel was owned by Starwood directly or among its various funds, including its $10B nontraded REIT. That fund, Starwood Real Estate Income Trust, has faced pressure from investors, forcing it to drastically limit investor redemptions as it attempts to preserve liquidity and awaits a market recovery.
A call to Starwood wasn't returned as of press time. A spokesperson for Whitestone and Shaner declined to comment on the purchase price.
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