A non-traded REIT affiliate of New York-based Blackstone Group, one of the world's largest private equity firms, paid a recorded $48.5 million on Friday for a recently opened dual-brand hotels property near Orlando's Mall at Millenia.
Located at 5403 Millenia Lakes Blvd., the 4-acre site lies directly southeast and behind one of the top 10 highest grossing malls in the United States.
It has dual-branded Marriott hotels, a 134-key SpringHill Suites and 120-key Residence Inn, that were built over the past two years and just opened formally in early April. The taxes paid reflect a sale value of $190,944 per key, but the true sale value may have been higher with an FF&E allocation.
The seller was a joint venture affiliate of Puerto Rican developer PRISA Groupand Atlanta-based Peachtree Hotel Group, which previously paid $4 million for the land in December 2015. The dual-branded hotels were PRISA's first project in Orlando.
Officials with Blackstone and PRISA did not respond to requests for comment on Tuesday. No mortgage was recorded with the sale.
The buyer was an affiliate of BREIT, a non-traded REIT that gives individual investors access to Blackstone's institutional real estate platform with minimum initial investments of $2,500.
Prior to this week, BREIT owned four select-service hotels in Tampa and Orlando totaling 469 keys bought in July 2017, as well as two multifamily assets in Orlando.
PRISA is in the midst of developing its third local hotel, a 165-key Element by Westin along Universal Boulevard. The company bought the land on April 27, brought on Peachtree again as JV partner and is still producing its construction plans, president Federico Stubbe, Jr. told GrowthSpotter on May 1.
Blackstone has more than $120 billion in total real estate assets under management, per its website. Within that are approximately 176,000 hotel keys globally, making it one of the world's largest hospitality investors.
In Orlando, Blackstone also owns the the 352-acre Grande Lakes Resort, which includes the Ritz-Carlton Orlando and JW Marriott with a combined 1,580 guest rooms.