An affiliate of Largo-based Equity Management Partners (EMP) paid a recorded $21 million on Tuesday for the 308-key Courtyard Orlando Lake Buena Vista at Vista Centre, with up to $3 million planned for renovations over the next two years, the company's founder told GrowthSpotter.
Located at 8501 Palm Parkway less than a mile from the Hotel Plaza Boulevard entrance to Walt Disney World, the 13.68-acre property includes a three-story hotel built in 1989.
"The property has some value-add potential, and we plan on coming in there with a rehab for the property, with PIP (Property Improvement Plan) requirements from Marriott including interior cosmetics, furniture, television upgrades, expanding the gym and new technology," said Ben Mallah, an owner of hotels and apartment properties throughout Florida.
This is EMP's third hotel purchase in Orlando's tourism corridor within the past year. Mallah's company serves as its own property manager, and is also currently rehabbing the Four Points by Sheraton Orlando Studio City on N. International Drive it bought in January 2016, and the Hawthorn Suites by Wyndham Orlando International Drive, which he won at auction last October and purchased in early December for $9.25 million.
"We sold a lot of property in 2016, so we're definitely satisfying our 1031 needs," Mallah said. "We probably have another $25 million to place in new assets. There's a senior housing property we plan to buy in Clearwater, we just sold a hotel in Boca Raton, and we're selling a Clarion Inn in Fort Lauderdale that may close in the next two months."
Mallah said he currently has no other properties under contract in Greater Orlando, but "we're out looking every day."
The seller was Florida/Vista Ltd., an investment vehicle managed by Quantum Capital Partners out of Tampa, with investment stakes by Ocean Properties Hotels Resorts & Affiliates and members of the Walsh family that founded the company. It previously paid $3.625 million for the land in 1987.
The property was listed by HFF in Orlando.