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A Fort Lauderdale-based investment firm has made its first splash into the D.C. market with the acquisition of a 298-room Reston hotel.
DoveHill Capital Management acquired the Sheraton Reston from JBG, which had left it out of its July merger along with a host of other properties it aimed to sell. HFF Senior Director Cyrus Vazifdar brokered the deal on behalf of the seller.
The price of the deal was not disclosed, and it has not been recorded in Fairfax County property records. The JBG Cos. bought the hotel in 2000 for $35.75M and launched a renovation on the property. The property's assessed value has dropped by more than $10M since 2012 and received a 2017 assessment of $23.5M.
The hotel, at 11810 Sunrise Valley Drive, sits across the Dulles Toll Road from the site where JBG Smith is moving forward with its 1.3M SF second phase of RTC West. JBG is also looking to sell the Westin Reston Heights, which sits next door to the Sheraton and was also left out of the merger, according to DoveHill Vice President of Development Derek Suarez. He said his firm is also interested in buying that hotel. JBG declined to comment.
DoveHill plans to launch a multimillion-dollar renovation on the Sheraton Reston, Suarez said. He said the property was attractive given its proximity to Reston Town Center and the ongoing mixed-use development nearby, plus the upcoming opening of the Silver Line.
"This is a huge growth market," Suarez said. "There is limited supply. The Downtown D.C. market is oversupplied, and we feel this is where the growth is going to be."
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