The 5.5-acre site of the Key Bridge Marriott in Rosslyn could soon be turned into a major mixed-use development.
Host Hotels & Resorts reached an agreement during the third quarter to sell the 583-room hotel for $190M, the REIT announced in its quarterly earnings report. A JV of two Los Angeles-based investment firms, Oaktree Capital and Woodridge Capital, acquired the property and are likely to explore development options, Real Estate Alert reports.
Built in 1959, the hotel is the longest continually operating Marriott in the world. At 1401 Lee Highway, it sits next to the Rosslyn entrance to the Key Bridge that connects Arlington with Georgetown. The site's current zoning allows for up to 990 hotel rooms, 630 residential units or 660K SF of office, the Washington Business Journal reports.
Bethesda-based Host had a land lease on the hotel since its construction, but in August 2016 it acquired the ground lease, giving it full control over the property. Following the acquisition, then-CEO Ed Walter told Bisnow the REIT was considering a range of options for the property, including partnering on a new development.
The decision to sell the hotel brings an additional infusion of capital to Host, which also last quarter sold two hotels in Melbourne, Australia, and Indianapolis for a combined $250M. Host owns several other D.C.-area properties, including the Westin Georgetown, the JW Marriott on Pennsylvania Avenue and the Washington Marriott at Metro Center.
Oaktree made another big D.C. hotel acquisition last year when it bought the Washington Hilton for $306M.
