Jones Lang LaSalle Hotels is pleased to announce the sale of the Hotel Monaco Chicago, Hotel Monaco Denver, and Hotel Monaco Salt Lake City on behalf of institutional clients advised by PREI® (Prudential Real Estate Investors). The portfolio of assets was purchased by Cornerstone Real Estate Advisers, LLC for the Cornerstone Hotel Income & Equity Fund II, LP (CHIEF II) for an undisclosed sum. To support Cornerstone’s purchase, Jones Lang LaSalle’s real estate investment banking experts secured the acquisition financing from a major life insurance company. All three properties are market-leading, stylish, boutique assets that operate at the top of their competitive sets.
The portfolio consists of the 192-room Hotel Monaco Chicago, the 189-room Hotel Monaco Denver, and the 225-room Hotel Monaco Salt Lake City. These three hotels are located in the heart of their respective city’s downtown core, with excellent access to corporate and leisure demand generators. Each property benefits from unique architectural and interior design elements that allow it to stand out from its competitors and capitalize on travelers’ growing appetite for boutique hotels.
“Cornerstone seized an excellent opportunity to acquire a geographically diverse portfolio of top-performing boutique assets,” said Alan Tantleff, executive vice president for Jones Lang LaSalle Hotels who led the sales effort for PREI. “These three properties demonstrated strong and growing cash flow with a combined RevPAR penetration exceeding 115 percent.”
Other members of Jones Lang LaSalle Hotel’s team included Tom Fisher in Chicago and John Strauss in Los Angeles. The acquisition financing effort was led by Executive Vice Presidents Ben Singer and Jeff Davis.
“From contract to closing, we arranged this financing in just 60 short days to successfully meet an aggressive acquisition timeline,” said Mr. Singer. “This large loan package was also provided without any syndication requirement—a feat which is exceedingly difficult to accomplish given current market conditions. We credit the success of this strategy to the superior level of cooperation between the seller, Cornerstone Real Estate Advisers and the lender, as we all worked together quickly to meet a common goal.”
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide both the depth and breadth of advice required by hotel investors and hotel companies, through a robust and integrated local network. In 2007, Jones Lang LaSalle Hotels provided sale and purchase advice on 259 hotel transactions globally; representing a combined value of US$13.9 billion, a total of 54,763 hotel rooms in 84 cities. In addition advisory and valuation services were provided on 660 assignments globally for 182,048 rooms across more than 300 cities.
The global team comprises over 270 hotel specialists, operating from 31 offices in 18 countries. The firm’s advice is supported by a dedicated global research team, which produced over 45 publications in 2007 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com
About Jones Lang LaSalle’s Capital Markets Group
Jones Lang LaSalle's Capital Markets Group is composed of a broad range of real estate investment debt and equity specialists, and corporate finance experts, working on all property types and in all the major national markets on behalf of major institutional and local investors and developers, as well as corporations. The firm's Capital Markets professionals are highly skilled at pinpointing and tailoring the right capital solutions for each of these client's needs. The Investment Sales teams assist investors in developing and executing asset recapitalization strategies for office, industrial, retail, multifamily, healthcare and seniors housing product. The firm’s Real Estate Investment Banking experts raise debt and joint venture equity for investors and developers, and provide secondary loan sale advisory services. The Corporate Finance professionals help corporations develop and execute strategies that bridge their occupancy, capital deployment and financial reporting objectives for their facility portfolios. Collectively, the firm's Capital Markets Group handled $82 billion in annual transaction volume in 2007.