Cappelli Enterprises released the following announcement:
Investment Community Shows Strong Interest In Downtown New Rochelle Properties and Future Development Potential
NEW ROCHELLE, NY (August 9, 2010) — Louis R. Cappelli has announced that Chatham Lodging Trust has contracted to purchase the Residence Inn by Marriott in downtown New Rochelle. Palm Beach Florida-based Chatham (NYSE:CLDT) is a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium-branded select-service hotels.
Cappelli said Chatham has signed a contract to acquire the hotel in an all-cash transaction for $21 million, or approximately $169,000 for each of the hotel’s suites. The entry of Chatham into the New Rochelle market is an indication of strong interest by major investors in the city’s downtown area where hundreds of millions of dollars has been invested over the last 10 years by Avalon Bay Properties, Entertainment Properties Trust and others.
“There is a clear pattern of major investment in New Rochelle by national public companies which we believe reaffirms the long-term economic viability of New Rochelle’s downtown”, Cappelli said. “It is my intention to utilize these partnerships and new relationships to gain access to capital markets for future downtown development. Given the lack of access to capital markets via traditional banking relationships, these financing avenues will be critical to the development of my next project in New Rochelle, LeCount Square.”
Cappelli added: “This is a story of investment following investment.” Citing the real estate industry’s limited access to traditional banking funds for economic development capital, Cappelli said that his firm would be looking to partnerships and relationships with alternate capital market sources to secure the level of financing needed for future developments. “There are REITS and hedge funds that have strong interest in investing in emerging urban centers, and downtown New Rochelle is a perfect example. It also has already gone a long way toward revitalizing its downtown which makes it especially attractive for further investment. We are optimistic that these financing sources will play a critical part in Le Count Square mixed use development plans.”
Cappelli said his company will continue to work with the City of New Rochelle’s as well as with the United States Post Service to complete the approvals, design and construction necessary for creation of LeCount Square, a 1.05-million square-foot mixed use, hotel, office and residential development. The project is adjacent to New Roc City, Trump Plaza and will occupy a full block bordered by LeCount Place, Anderson Street and North Avenue.