Argosy Invests in the Holiday Inn Express Fort Washington
On March 13, 2015, Argosy Real Estate Partners III, L.P. and its parallel Funds (“AREP III”) made a controlling investment in the acquisition and redevelopment of an obsolete 217-room full-service Holiday Inn for conversion to a 168-room select-service Holiday Inn Express & Suites and a stand-alone casual dining restaurant. Advantageous pricing was achieved due to a motivated seller, a lightly marketed asset, and the ability to re-use the existing eight-story concrete structure.
The existing building will be gutted, downsized, renovated, and repositioned to meet current Holiday Inn Express select-service brand standards. The project includes demolition of the hotel’s obsolete function space and the resulting excess land being marketed for lease as a restaurant pad. The potential exists to develop a second restaurant pad at a later date. The new hotel will have 168 guest rooms and is projected to open in the spring of 2016. The property benefits from a proven location near the junction of Interstates 276 (Pennsylvania Turnpike) and 476 within an infill suburban submarket within a five mile radius, containing 14.8 million square feet of office space and a dense residential population. All local approvals and entitlements were in place prior to closing on the Property, enabling an immediate start to construction. Franchise approval and a Product Improvement Plan were also in place prior to closing, as well as a Guaranteed Maximum Price construction contract with an experienced local general contractor.
AREP III partnered with Haverford Properties/Haverford Hotel Partners, a partnership between two local real estate firms. Haverford Properties is a privately held real estate investment company focused on the acquisition, development, and management of commercial properties in the mid-Atlantic region. Haverford Hotel Partners is an experienced local hotel manager with regional infrastructure whose portfolio includes select-service hotels under the InterContinental Hotels Group and Hilton brands.