A Georgia-based family of hotel investors paid a recorded $13.5 million on Friday for two neighboring limited-service hotels near Orlando International Airport.
Located at 3835 McCoy Road and three miles northwest of the airport's main terminal, the partially joined Clarion Hotel and Econo Lodge total 330 rooms and were originally built in 1985, with extensive renovation completed last year to all the rooms and common areas.
A large lobby with high ceilings and retail space was a focus of the renovation, and the property features an outdoor pool, restaurant and 15,000 square feet of meeting space.
The recorded sale price reflects a value of $40,909 per room. The portfolio's asking price was $15 million, with an advertised Cap rate of 8.48 percent.
The buyers were investment affiliates of Teresa and Yong Chung, whose family management company, led by son Simon Chung, is based in Roswell, Georgia. The members did not respond to requests for comment on Wednesday.
The seller was McCoy Investments I LLC, an investment vehicle for Michigan-based hotelier Remo Polselli. This was Poselli's final divestiture of a hotel asset in Orlando, after selling two independent hotel properties in May along International Drive for more than $39.5 million.
Ahmed Kabani and Michael McArdle of Marcus & Millichap represented the seller, and marketed the property for 32 days before it was brought under contract. That speed to contract indicates the true sale value with FF&E was likely closer to the $15 million list price.
The buyers sourced a $6.4 million mortgage from a Miami-based investment vehicle managed by Polselli. They also took out a second mortgage worth more than $3.589 million from Sacramento Orlando Hospitality LLC, an investment vehicle for Harinder and Baljit Johl, who have managed other local hotel investments.