California-based REIT Hall Equities Group bought out Minnesota-based ZMC Hotels, acquiring 4,000 rooms. Hall Equities Group also plans to invest more than $40 million in improvements of ZMC Hotels.
To help finance the purchase, investment groups under Hall Equities sold two Walnut Creek, Calif., properties and the Monte Vista Crossings mall in Turlock, Calif.
The group also sold The Arroyo, a luxury apartment complex under construction on Arroyo Way in downtown Walnut Creek, to an unidentified life insurance company. The six-story, 100-unit project is due to be completed this fall.
Hall remains the general contractor and will manage the Arroyo, according to the news release.
Another Hall Equities investment group sold the 41,000-square-foot 2890 North Main Street office building, long home to a US Bank regional office.
ZMC Hotels owns and operates private-label boutique hotels and others licensed by companies such as Hilton, Marriott, IHG, Wyndham and others.
Zenith Asset Co., an affiliate of Hall, will hold the master leases and manage all the hotels, along with other properties. Hall Equities Group and Zenith will be headquartered in Walnut Creek with Mark Hall as the CEO for both companies.