Hilton Alexandria Mark Center sells for $121 million
- January 10, 2011
Amstar has sold the 496-room Hilton Alexandria Mark Center to Crow Holdings Realty Partners V LP of Dallas for $121 million. In announcing the sale Monday, Denver-based Amstar said the hotel could be a case study of its strategy.
The real estate investment manager acquired the 30-story property with a joint venture and management partner, David Hotel Co., in June 2005 for $93.5 million. The following year, the partnership invested $9.3 million in renovations. Amstar then refinanced the hotel in 2007, which it said allowed a full return of equity to investors.
Two office towers of about 1.4 million square feet are going up next to the property, which boosted its sales value. During 2011, the first of 6,400 Department of Defense employees will begin working out of this new Mark Center office space as part of a major consolidation of DoD workers in Northern Virginia. The development is part of the base realignment and closure program associated with the realignment of many military installations.
“Acquiring the property at an attractive basis, improving the physical asset and streamlining operations were key enablers of adding value, while the refinancing allowed our investors to hold the asset until BRAC became a reality and catalyzed the sale,” Amstar Executive DirectorAdam Minnick said in a statement.
Davidson Hotel will continue to manage the hotel, located in the Mark Center mixed-use development. It’s located Interstate 395 on a site bordering a 43-acre botanical preserve.