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Arbor Lodging JV Acquires Marriott Schaumburg for $35.5M

Investcorp International Sells 398-Room Hotel in Northwestern Chicago Suburb
February 13, 2018
Credit: Arbor Lodging

Arbor Lodging Partners LLC, a Chicago-based hotel investment and management company, partnered with Middleton Partners LLC in the acquisition of the 398-room Marriott Schaumburg hotel for $35.5 million, or about $89,000 per room. The seller, Bahrain-based Investcorp International, Inc. originally acquired the property in 2007 for $49.5 million, according to CoStar data.

The joint venture will complete major renovations the hotel to further enhance its position in Chicago’s northwestern suburbs. The hotel was originally constructed in 1984 at 50 N. Martingale Rd. in Schaumburg, IL, located in close proximity to major attractions such as Legoland Discovery Center Chicago, the 1.2 million-square-foot Woodfield Mall and downtown Chicago.

"This investment in our local community directly aligns with Arbor’s disciplined investment strategy, growth plans, and values," said Vamsi Bonthala, CEO of Arbor Lodging. "We’ve been looking for the right opportunity to make our entry into the competitive Chicago market for some time and when presented with a performing asset that has significant upside, we knew it [Marriott Schaumburg] was the right choice for Arbor.”

Arbor Lodging will also manage the property through its affiliate, Arbor Lodging Management.

Avison Young’s Hotel Group brokered the deal on behalf of both parties in the sale. Rick George represented the seller, while Andrew Broad represented the buyer.

Jeff Bucaro, Nicole Aguiar, Tony Malk, Matt Enright and Bryan Rosenberg of HFF's debt placement team arranged $38.7 million in financing through Ladder Capital on behalf of the acquiring venture, which will use the three-year, floating-rate loan, with a one-year extension, to finance the acquisition and future renovations.

Please see CoStar COMPS #4123325 for more information on this transaction.

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