Lowe Enterprises Investors (LEI) has completed the sale of Motif Seattle, by Destination Hotels & Resorts, on behalf of a national hotel investment venture with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Company. The 319-room hotel, formerly known as The Red Lion on 5th Avenue, is located at 1415 5th Avenue, between Pike and Union Streets.
“The transaction is the first disposition on behalf of our venture with Guardian and Allstate and earned significant return on the original investment,” said Bradford W. Howe, co-CEO of LEI. “We continue to seek investment opportunities where we can earn solid returns for our investors by improving the physical condition and/or operations of a hotel.”
The venture acquired the property in 2011 and immediately began a $20 million multi-phased renovation, adding 22 guest rooms and increasing meeting space by 50 percent. The hotel recently exited the Red Lion franchise and was rebranded Motif Seattle, making it the largest independent hotel in downtown Seattle. LEI affiliate Destination Hotels & Resorts continues to manage the property.
The LEI-Guardian-Allstate venture targets well-located, full-service hotels that are of a three-star quality or greater and can be repositioned to take advantage of the market’s recovery. LEI seeks quality properties where it can improve performance through capital improvements, new marketing or management.
The venture also owns the Hotel Derek, a 314-room independent boutique hotel in the prominent Galleria area of Houston.
Lowe Enterprises Investors (LEI) provides real estate investment management services on behalf of a select list of institutional and high net worth clients and partners through individually managed accounts, commingled fund relationships and targeted investment programs. The firm has been responsible for $7 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s. LEI has been a leading value-added investor through multiple cycles, employing equity and structured debt in its investment strategies. The firm is based in Los Angeles and is an affiliate of Lowe Enterprises, a national investment, development and management firm. Since inception in 1972, Lowe has acquired, developed or managed more than $21 billion of real estate assets.
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