Argosy Invests in PRISA Hotel Portfolio
On July 29, 2016, Argosy Real Estate Partners III, L.P. and its parallel funds made a controlling preferred equity investment in a partnership formed to develop two hotels, a 175-room Marriott AC Hotel in Tampa, Florida and a 254-room dual-branded Marriott Residence Inn/SpringHill Suites in Orlando, Florida. AREP III’s investment is structured as preferred equity to provide downside protection while also providing upside participation which can generate opportunistic returns.
The Marriott AC Hotel in Tampa will be located within MetWest International, a high-end 32-acre mixed-use development in Tampa’s thriving Westshore Business District located immediately southeast of Tampa International Airport. AC Hotels is a fast-growing premium select-service brand with nearly 100 locations across Europe that is being rolled out throughout the United States by Marriott. The dual-branded 120-room Residence Inn/134-room SpringHill Suites in Orlando will be located in the International Drive submarket near Universal Studios and adjacent to the Mall at Millenia, one of the top-ranked malls in the country and a major tourist destination. The two flags will be housed in separate towers within a single building that will share common amenities and meeting space. Construction of both hotels will commence in August 2016 with scheduled completion in January 2018.
AREP III partnered with Peachtree Hotel Group to make the preferred equity investment. AREP III and Peachtree collectively partnered with PRISA Group as the local operating partner. Peachtree is an experienced hospitality owner, manager, developer and lender with whom Argosy has partnered on multiple transactions. PRISA Group is an experienced developer and builder of hospitality properties and residential communities with significant experience in both Florida and Puerto Rico.