Argosy Exits Homewood Suites Durham
We are pleased to announce that Argosy Real Estate Partners II, L.P. has successfully exited its investment in the 96-room Homewood Suites hotel located in Durham, North Carolina. On June 3, 2015, the hotel was sold to a regional hotel owner/operator. The property includes a four-story, 96-room extended stay hotel that was constructed in 1998. The hotel is located at an exit of I-40, a major east/west interstate highway, and is in close proximity to the Research Triangle business park, downtown Durham, the University of North Carolina Chapel Hill, Duke University, and the Southpoint Mall.
The Homewood Suites was acquired as part of a two-property acquisition through a partnership formed with Peachtree Hotel Group, a vertically-integrated hotel owner, manager, and developer based in Atlanta with properties located throughout the Southeast. The partnership purchased two select-service hotels in Durham: the 96-room Homewood Suites and a 98-room Sheraton Four Points located five miles apart. Both hotels were acquired in an off-market setting at meaningful discounts to replacement cost.
The partnership created value at the Homewood Suites property through the renovation of the hotel pursuant to a franchise-required Product Improvement Plan. The renovation included major upgrades to the guestrooms, lobby, and public spaces and was completed in October 2014.