Legendary Capital has sponsored the acquisition of the 90-room Hampton Inn & Suites in Fargo, N.D., in a $11.4 million transaction. The deal used Legendary Capital’s proprietary Equity Preservation UPREIT structure – where the Hampton Inn & Suites ownership contributed their property in exchange for a special class of Transition Partnership Units (T-Units) – which allows for the potential preservation of the contributor’s equity as the property restabilizes.
The property is located in the Fargo Metropolitan Statistical Area, which has a population of 250,000. Fargo's population has been growing significantly, with an almost 20 percent increase since 2010. The hotel is within a mile of Sanford Medical Center.
“This location is really ideal in the Fargo market,” CEO Corey Maple said in a statement. “Sanford Medical Center is a true regional hospital that covers a broad area, and the Hampton Inn & Suites is one of its closest hotels.”
A change-of-ownership property improvement plan will be completed after contribution to refresh the property to the latest Hampton standards. Once complete, Legendary Capital is optimistic that the property will continue to be a top performer in the submarket going forward and capture new demand in the market.
“The property will be brought up to the latest Hampton standards, and we know guests will appreciate the refresh,” said Chief Investment Officer Dave Durell. “We envision this property as a home away from home for guests, especially for those visiting the Sanford Medical Center.”
Current management company KAJ Hospitality will continue to manage operations at the Hampton Inn & Suites. Chief Vision Officer Aaron Johnson said KAJ is looking forward to seeing what the partnership means for the hotel’s future.
“We are excited about this partnership and the capital that will go into refreshing the property,” he said. “We have owned this Hampton for 10 years now and are thrilled to be a part of the upcoming renovations.”