DALLAS – June 20, 2019 – Berkadia’s Hotels and Hospitality team announced the first sale of the team’s exclusive Glacier House Portfolio listing, a portfolio of 15 hotels strategically located throughout the West and Southwest. The sale of the Doubletree Dallas-Farmers Branch, which closed on May 22, exemplifies a successful start to the Berkadia team’s strategy of focusing on the assets individually, highlighting each property’s unique opportunity and building greater value for the seller and buyer alike.

The Glacier House Portfolio comprises a total of 1,723 guest rooms and upwards of a potential $375 million in combined sales. The remaining properties in the portfolio are anticipated to close throughout the rest of the year.

“While the Glacier House Portfolio is young and has been recently renovated, the market is seeing a greater appetite for individual assets below $50 million,” said Senior Director Matthew Bailly. “Given this market trend, the Berkadia team has worked to highlight each hotel as an individual opportunity, working to each asset’s strengths, rather than the weight of an overall portfolio. While Berkadia could have sought a splashy large transaction that would have encompassed all or the majority of the offered portfolio, we know that investors are more interested in using a scalpel than a sledgehammer these days.”

“With the case of this sale, the hotel recently completed a comprehensive $8 million—or $50,000 per key—renovation in December 2018,” added Bailly. “The sale represented a sub-five cap rate on 12 months of financials. With the recent renovation, the buyer, who was in a 1031 exchange, saw this as an opportunity with significant upside and growth. By offering Doubletree Dallas-Farmers Branch as an individual asset, rather than part of the overall portfolio, the property was able to meet the buyer’s specific needs.”

Berkadia continues to see success, with two other assets from the portfolio already under contract and scheduled to close upon receiving their certificate of occupancy. They continue to market the next three assets that are part of the portfolio’s pipeline – the Holiday Inn Express and Residence Inn in Moreno Valley, California and the Holiday Inn Express and Suites in Santa Ana, California. The Moreno Valley locations will speak to a specific type of buyer, bringing with them the benefits sought after by investors seeking out the burgeoning Opportunity Zone marketplace.