- March 14, 2013
BUYER: Summerlin Square LLC (principal: W. Stephen Hagenbuckle), Cape Coral
SELLER: IQ16-11281 Summerlin Square Drive LLC
PROPERTY: 11281 Summerlin Square Drive, Fort Myers
PRICE: $4.57 million
PREVIOUS PRICE: $10.4 million, July 2007
LAW FIRM ON DEED: Locke Lord LLP, Dallas
PLANS, DESCRIPTION: Cape Coral and New York City-based TerraCap Partners purchased the 120-room Hampton Inn & Suites Fort Myers Beach/Summerlin Road for $4.57 million.
The price equated to $38,063 per room.
The 80,651-square-foot hotel was built in 2001. Occupying a 4.1-acre site, the property features an outdoor heated pool, meeting space, a business center and fitness room.
Since November 2011, Aimbridge Hospitality has managed the property.
“It is currently a very successful hotel,” says W. Stephen Hagenbuckle, managing principal of TerraCap Partners. “We had 85 check-ins just last night. The only things it needs are things to stay current with the Hilton flag. We have some property improvements planned to bring it up-to-date on its design and bedding. That's coming this summer.”
Hagenbuckle says the hotel sold for less than 50% of the replacement cost. The firm also liked that the hotel gets about $100 a night for rooms in season. Plus, its location, near both Fort Myers Beach and Sanibel Island, makes it particularly attractive to tourists.
The property was purchased through TerraCap Partners' second opportunity fund, TerraCap Partners II. That fund has made a total of nine investments covering more than 600,000 square feet of apartment, office, light industrial, hotel and mixed-use space and 330 acres of land.
The Hampton Inn is TerraCap Partners' second hotel purchase. Earlier this year the firm purchased the 87-room AmericInn in Bonita Springs for $2.85 million, equal to $32,782 per room. That hotel has been converted to a La Quinta Inn & Suites.