UPDATED: December 13, 2016 3:28 PM — Chicago-based GEM Realty Capital paid at least $24 million on Dec. 8 for the 323-key Holiday Inn Orlando-Disney Springs, doubling down on the Lake Buena Vista submarket after buying the nearby Hilton Orlando Buena Vista Palace last year for $96 million.
Located at 1805 Hotel Plaza Blvd., the Holiday Inn lies just a few hundred yards east from the entry to Disney Springs. The purchase price ($74,303 per key) is based on taxes paid on a deed recorded Tuesday morning in Orange County, and may not reflect additional value of interior assets.
GEM Realty's affiliate buyer GRE HI Orlando Owner LLC sourced a $15 million leasehold mortgage from Bank of America with respect to the land, and a fee mortgage with respect to planned improvements.
The hotel's seller, Prisa-Lake Buena Vista LLC, is an affiliate of PGIM Real Estate, the real estate investment business of PGIM, Inc., part of the global investment management businesses of Prudential Financial, Inc.
Dennis Reed of Tampa-based The Plasencia Group was listing agent on the property.
Plasencia and GEM Realty did not respond to requests for comment on Tuesday.
Walt Disney Parks and Resorts remains the land owner, and will continue a ground lease to the new hotel owner that was first signed with Prisa in 2007.
GEM Realty and Prisa initially signed a purchase and sale agreement for the Holiday Inn on May 17 of this year, and amended the sale and closing date six times between June and November, according to records filed with Orange County.
The Holiday Inn deal follows a late January 2015 purchase of the nearby 1,011-key Buena Vista Palace for $96 million by another GEM Realty affiliate, sold by an affiliate of The Blackstone Group (roughly $94,955 per key).
That GEM affiliate took out a $104 million loan from Aareal Capital Corp. to finance the acquisition, and saw through a rebranding of the hotel to Hilton that was completed in October of this year.
GEM Realty was part of a consortium with Blackstone that developed in 2006 the Waldorf Astoria Orlando and Hilton Orlando Bonnett Creek, and later sold both in February 2015 to Hilton Worldwide, part of a $1.76 billion portfolio sale involving five hotels.