IP Capital Partners and GEM Realty Capital Buy Grand Hyatt Tampa Bay for US$146m

Main Photo: The Grand Hyatt Tampa Bay

Date: September 2019

Location: Tampa Bay, Florida, USA

Name: Grand Hyatt Tampa Bay

No. of Keys: 444

Seller: According to Yardi Matrix data, the previous owner was Connecticut-based (in the USA, Switzerland HQ) UBS Realty Investors. The deal was the most expensive commercial sale in Hillsborough County in a year, according to the Tampa Bay Times, which also reported that the previous owner bought the hotel only in 2010 for $58.5 million.

The office building was built in 1985 by The Wilson Co. and the 11-story building underwent a cosmetic renovation in 2004. It has 1,332 square feet of retail.

Buyer: IP Capital Partners, a Brazil-based private real estate investment and asset management firm, teamed up with GEM Realty Capital inc to buy two assets in Tampa, Fla. The partnership paid $145.8 million for the Grand Hyatt Tampa Bay, a luxury 444-key hotel, and a further US$ 80.8m for Bayport Plaza, a Class A, 265,976-square-foot office property.

Located along Tampa Bay near the Tampa International Airport, the properties are in the epicentre of the Rocky Point and Westshore sub-markets. The Grand Hyatt Tampa Bay has nearly 33,000 square feet of meeting space, three food and beverage outlets, two tennis courts, an outdoor resort-style swimming pool and a 24-hour fitness centre and is set in a 35-acre nature reserve.

Bayport Plaza features a tenant roster that includes numerous Fortune 500 and global companies, including Boeing, Chubb, Fidelity, Colonial Life, Mutual of America, Paycor, Savills Studley and Baird Investments.

JLL Hotels & Hospitality advised on the sale of the two properties. JLL advised on behalf of the seller and also secured acquisition financing for the buyer. JLL Senior Director Preston Reid and Director Wyatt Krapf led the hotel transaction while Senior Managing Director Hermen Rodriguez led the office transaction.

The deal was secured by HFF prior to being acquired by JLL on July 1. Co-brokerage services were provided by Jones Lang LaSalle Americas Inc.

Noting waterfront properties in Tampa are increasingly rare, Drew said in a prepared statement there was significant interest in financing the transaction of two premier assets. Rodriguez noted office investors were attracted to Tampa’s job growth and Reid cited the strong interests in Tampa as a business and leisure travel destination. Reid also pointed to the $2.64 billion airport expansion and the increasing number of direct flights to the market.

In other Tampa hotel news, Hilton opened Hampton Inn by Hilton Tampa Downtown Channel District and Home2Suites by Hilton Tampa Downtown Channel District, a 10-story, 213-key dual-branded hotel in downtown Tampa in July. The property is close to the Tampa Convention Center, the Florida Aquarium, Amalie Arena, Water Street and Port Tampa Bay. Less than a mile southwest from the dual-branded property, a 502-key Hilton hotel changed ownership in May.

Price: US$145.8m for the hotel alone

Price per Key: US$328,378

THPT Comment: Great deal for UBS…a near tripling of their investment over nine years!

First Seen: Commercial Property Executive

The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.

For more information – Visit www.thpt.co.uk or email info@thpt.co.uk