Last Call To Invest - Private Equity Offering For Scottsdale Boutique Hotel With 20.1% Target Internal Rate Of Return

The offering for Hotel Adeline Scottsdale, Marriott Tribute on the CrowdStreet private equity real estate investment platform is approaching its funding deadline. Offers to invest are due by May 4, 2022 with funds due by May 6, 2022.

The investment offering is for a Marriott International Inc MAR Tribute-branded boutique lifestyle hotel just north of popular Old Town Scottsdale, AZ.

The sponsor, ESI Ventures, 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.

ESI Ventures reported today that Hotel Adeline finished Q1 2022 $1.5 million ahead of budget across nearly all core areas.

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.

• 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: ESI Ventures is 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