VIZZDA—September 18th, 2012—Gregg Toon, Treasurer
of ACCOR North America, has exercised a purchase option on six Phoenix-area
hotels currently leased and operated by Motel 6. The sale is the Arizona
portion of a broader disposition by the Herrick Company including 38 similar
hotel properties in California, Illinois, Indiana, New Mexico, New York and
Oregon, 23 retail bank branches in Indiana and Kentucky, 27 distribution
centers, a corporate headquarters in Illinois and an 181k ft2
hospital in Indiana.
The sale price for this portfolio is reported by the Herrick
Company to be in excess of $550m, of which the Maricopa county portion accounts
for roughly $35.28m. According to Norton Herrick, Chairman of the Herrick
Company, "With these
transactions, we have executed on our strategy to profitably dispose of certain
assets and have successfully positioned the company for future growth."
Information on
the individual properties is broken out below:
Flag
|
Units
|
Sub-Market
|
Price
|
Price Per Unit
|
Studio 6 #6030
|
140
|
Deer Valley
|
$4,989,202
|
$33,855.30
|
Motel 6 #1315
|
101
|
Tempe
|
$4,615,248
|
$45,695.42
|
Studio 6 #6031
|
149
|
Ahwatukee
|
$4,477,231
|
$28,546.10
|
Motel 6 #1329
|
61
|
Airport
|
$3,975,906
|
$61,919.00
|
Motel 6 #1303
|
60
|
Tempe
|
$2,157,779
|
$36,962.98
|
Motel 6 #1304
|
351
|
SW Phoenix
|
$15,134,418
|
$43,118.0
|
Herrick had previously acquired the properties February 28th,
2001 for a combined price of $33m or $38,291 per door. These properties—as well
as 32 others in the aforementioned states—were secured by a $165,955,396 cross-collaterilized
deed of trust with Berkshire Hathaway Credit Corporation issued at time of
acquisition and released with the exercise of the ACCOR purchase option.
The option to purchase arose from a master lease between
Herrick as lessor and ACCOR North America as lessee whereby ACCOR would manage
the portfolio for a period of 25 years with two 10-year options to extend; following
consummation of the master lease, ACCOR North America then entered into a
similarly termed sublease agreement with Motel 6 Operations LLC, the entity
responsible for the operation of the hotels. ACCOR will now assume fee simple
ownership of the properties and continue in its capacity as their manager.
By:
Paul Dionne
Director of Analytics
pdionne@vizzda.com
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