Real Estate Investment Offering For Scottsdale Hotel With 20% Target Annualized Return

The private equity real estate investment platform CrowdStreet has launched a new offering today for Hotel Adeline, a Marriott International Inc MAR Tribute-branded boutique lifestyle hotel just north of popular Old Town Scottsdale, AZ.

The sponsor purchased the hotel in 2016 in an off-market transaction and shut the hotel down in 2017 for an extensive remodel. The company is now raising up to $15,000,000 on CrowdStreet to recapitalize the 213-key hotel at a purchase price of $62.5 million, providing investors with the opportunity to capitalize on the asset’s rising cash flow.

Investment Highlights: The Scottsdale lodging market has historically been the top-rated submarket in greater Phoenix, with an average revenue per available room (RevPAR) $50 higher than the broder Phoenix market in 2019.

The Property will be managed by Evolution, the lifestyle arm of Aimbridge which manages over 1,500 hotels and has significant experience in hotel operations.

• Minimum investment: $25,000
• Target investor IRR: 20.1%
• Target equity multiple: 1.7x
• Target average cash yield: 5.6%
• Target investment term: 3 years

Deal sponsor: The investment opportunity is being offered by ESI Ventures, a commercial real estate investment firm with experience completing similar hotel investments and a deep understanding of the Phoenix market. Since its inception in 2016, the firm has completed over $1 billion in transactions. 

Details on this offering and other private equity real estate investments can be found on Benzinga Alternative Investments.

Photo: Courtesy of CrowdStreet