Capelli Enterprises has signed an agreement to sell the Residence Inn by Marriott in New Rochelle, NY to Chatham Lodging Trust (NYSE: CLDT),for $21,000,000 in an all-cash transaction.
For Capelli, the transaction represents a further unwinding of his stake in the New Roc City complex he developed 10 years ago. As part of a settlement agreement with former investment partner Entertainment Properties Trust (EPT), Capelli resolved outstanding legal disputes with EPT by turning over control of New Roc City to EPT.
Chatham Lodging Trust, the new owner of the New Roc City Marriott property, pending completion of the acquisition agreement, is a self-advised real estate investment trust that was organized to invest in upscale extended-stay hotels and premium-branded select-service hotels. The company currently owns eight hotels with an aggregate of 1,057 rooms/suites, and has a total of four additional hotels under contract to purchase.
“Westchester County is a premier location, home to many of New York City’s most desirable suburban communities, with some of the region’s most attractive demand generators and highest barriers to new competition,” said Jeffrey H. Fisher, Chatham’s chief executive officer. “The hotel is just 30 minutes from the heart of New York City, with easy access from all major highways, subways, bus-lines and Amtrak. The greater New Rochelle area has a very limited range of select-service, full-service or extended-stay hotels, and this property has enjoyed substantial market share premiums since it opened. The hotel is surrounded by a large number of major businesses and is proximate to prestigious country clubs and banquet halls bordering the Long Island Sound, thereby appealing to both business and leisure travelers.”
Located at 35 LeCount Place in New Rochelle, NY, the 10-story upscale extended-stay Residence Inn by Marriott hotel features 124 suites, complimentary high speed Internet access and fully equipped kitchens. The hotel offers an on-site fitness center, swimming pool and structured parking.
UPDATE: With Hannan Adley gone, Aman Ali is back in New Rochelle and seems to be up to his old tricks — serving as stenographer for the powers that be.
The deal is presented as a way to generate cash to move forward with LeCount Square. No mention that the MOU agreement expired over a week ago or that Al Tarantino was on the radio saying that the terms of the MOU were not met (i.e. the deal is dead).
Apicella spins the deal as demonstrating that New Rochelle is a good place to invest — except that Capelli is selling not buying…again.
Apicella says they were not looking to sell the hotel (which they have sold), and that they are not looking to sell The Lofts without mentioning it is the last remaining piece of New Roc City that Capelli owns having lost control of New Roc proper.
Ali tells use the “deal comes as Cappelli moves forward on LeCount Square, a $500 million plan for stores, offices, a hotel and luxury residences bounded by Huguenot Street, Anderson Street, LeCount Place and North Avenue.” He fails to mention that even Mayor Bramson has admitted that if a deal ever does go forward with would be significantly scaled-down. And again, no mention that the MOU has expired.
No mention either that deal also may spell the end of Capelli’s role on the New Rochelle BID board — Joe Apicella’s seat on the board was tied to the hotel.
