The Siegel Group Nevada, Inc. announced today that it had purchased the former Budget Lodge Extended Stay Hotel for $3.30 million in San Antonio. The acquisition is characteristic of The Siegel Group's investment strategy, as the property presented a value-add opportunity resulting from issues of mismanagement and deferred maintenance at a price well below replacement cost. This acquisition increases the number of Siegel Suites® and Siegel Suites Select® properties throughout the southwestern United States to 42 and marks the second location The Siegel Group has acquired in Texas in the last 70 days.
Built in 1963 and situated on an expansive 6.65-acre parcel located along Interstate 35 also known as the PanAm Expressway, the two-story, six building complex totals approximately 80,000 square feet and is comprised of large studio and one bedroom units. The property, which will be renamed Siegel Suites® San Antonio, possesses a variety of amenities and common space including a fitness center, outdoor swimming pool, a customer laundry facility as well as additional space that will be repurposed by the Siegel Group including a restaurant, bar-lounge, banquet and conference area. In converting the location to its popular Siegel Suites brand, the Siegel Group will immediately commence a renovation of the property to address substantial deferred maintenance issues and add amenities and improvements representative of its many other locations. Redevelopment plans are also underway to take advantage of excess land located along the PanAm Expressway included with the sale. Initial concepts call for the development of a fast-food or retail use.
Stephen Siegel, President of The Siegel Group stated: "We are excited to add this great asset to our portfolio and introduce our Siegel Suites® brand to the San Antonio market. We look forward to cleaning up and repositioning this once struggling property and further expanding our presence throughout San Antonio with additional acquisitions that are currently in the works."
The Siegel Group, which owns and operates a sizable commercial real estate portfolio consisting of apartments, extended-stay hotels and apartments, hotels, retail, office, and development projects, will be operating the property as a Siegel Suites® - the company's flagship brand of apartment communities which provide fully furnished apartment units and allow for flexible payment options without requiring a long-term commitment. Additionally, all Siegel Suites® offer a range of amenities includingits popular Siegel Rewards® program which provides loyalty points that can be earned and applied towards a free stay, gift cards, electronics and much more.
The Siegel Group is actively looking to acquire value-added properties throughout the United States and is working closely with lenders and private parties to take over distressed assets.
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