Asset manager Barings, a MassMutual subsidiary, completed the sale of a $650-million portfolio of seven hotels in the U.S. to a Hong Kong-based investment manager on behalf of an international financial services company.
Barings searched for new investors in the hotels, and directly arranged the sale without a broker while it secured private financing for the portfolio with three separate lenders. The new owner plans to keep Barings on as asset manager of the hotel portfolio on a long-term basis. The current hotel management companies and personnel will also continue operating the hotels as part of the transaction.
The seven upper-upscale business hotels are in the Chicago, Boston, Washington, Seattle and Phoenix metro areas. “As an asset class, commercial real estate equity continues to attract investors seeking risk-adjusted returns, and assuming an adequate hold period, well-located quality hotel properties also represent a good portfolio diversifier,” Michael Zammitti, head of U.S. real estate equity at Barings, said in a statement.
The sale follows Barings' recent opening of the $330-million 300 South Tryon office tower and hotel in Charlotte, N.C., in late November 2017. The Spectrum Cos. developed the 638,000-square-foot tower in Uptown Charlotte, while architectural firm LS3P designed the building. The site includes an office tower with the Kimpton Tryon Hotel Park attached to it.
Several tenants leased more than half of the development, including law firm King & Spalding, law firm Winston & Strawn, IT management consultant CapTech, real estate investor FCA Partners and The Spectrum Cos. The property is next to BB&T Ballpark and Romare Bearden Park, along with the Duke Energy, Wells Fargo and Bank of America campuses.