Legendary Capital, a sponsor of non-traded real estate investment trusts and other alternative investment offerings, has sponsored the acquisition of the 90-room Courtyard El Paso Airport in a $15.2 million transaction. The deal was materialized through a 721 UPREIT exchange, in which the hotel's previous owners contributed their equity in exchange for common limited partnership units.
Legendary Capital’s director of acquisitions Andrea Scott said the company's agility helped it complete the Courtyard transaction, which used a different deal structure than the prior transaction with the contributor. “This was Legendary Capital's second transaction with this contribution group, and we are proud to have found a deal structure that meets the needs of their disposition strategy specific to this property,” she said in a statement. “The Courtyard recently completed a property improvement plan, making it an excellent candidate for a 721 exchange.”
CEO Corey Maple said that through the company's Equity Preservation UPREIT program, Legenndary Capital has sponsored the acquisition of six properties while providing potential tax benefits to contributors. “Our program remains agile to ensure we are meeting the needs of each deal.”
The property is located in the El Paso metropolitan statistical area. Home to University Medical Center, the only level 1 trauma center in the region, El Paso serves as a medical hub to western Texas and southern New Mexico. It is also home to the William Beaumont Army Medical Center, which provides medical care for active and retired military personnel within Arizona, New Mexico and Texas.
The Courtyard is located near the El Paso International Airport and the Fort Bliss military base. The airport reported 3.5 million passengers in 2019 and had seen a steady increase in passenger traffic year after year. Fort Bliss is home to more than 38,500 active-duty military personnel.