Located at 8686 Palm Parkway, the 5-acre property includes a seven-story hotel built in 1988. It lies just east of the intersection with S. Apopka Vineland Road, and 1.4 miles from the Disney Springs entrance.
This is AD1's second Orlando-area hotel purchase in the past month, following the Quality Suites Royale Parc in Kissimmee on Sept. 14. The company also bought a property in Tallahassee last week.
"Lake Buena Vista is the best market in the area in terms of ADR (average daily rate)," said Alex Fridzon. "We're trying to position ourselves in different markets geographically and in terms of brands, which is what's behind the properties we're buying and developing."
A Property Improvement Plan (PIP) for the Comfort Inn will be minimal, he added, as the hotel was in general good condition at time of sale. AD1's management affiliate has taken over the property, and the company expects its sales team can improve the bottom line, Fridzon said.
Like with the Royale Parc in Kissimmee, AD1 is considering a flag change for this Comfort Inn in the short- to mid-term to a "more upscale brand," Fridzon said. He declined to name which flags are being pursued.
The buyer sourced a $19.6 million loan from a credit division of New York-based Fortress Investment Group.
The seller was an affiliate LLC of local owner-operator Sun Vista Hotels, managed by Alpesh Khushal, which previously paid $10.1 million for the property in January 2013. He owns one other hotel in the tourism corridor, a La Quinta Inn on Jamaican Court bought in late April 2016.
Patel is now helping Khushal search for a value-add hotel property to reinvest his sale proceeds, preferably in Central Florida.
Khushal is working within the 45- and 180-day opportunity windows of a 1031 exchange, but won't rush into a purchase, Patel said.