The Siegel Group Nevada, Inc. announced yesterday that it had acquired a 244-unit hotel property located in Albuquerque, New Mexico that was previously operated under both the Travelodge and Super 8 motel brands for $4 million.
This acquisition, which is characteristic of The Siegel Group’s investment strategy of acquiring underperforming, value-add assets substantially below replacement cost, increases the number of Siegel Suites and Siegel Suites Select properties throughout the southwestern United States to 42 and marks the second location The Siegel Group has opened in Albuquerque since first entering the market in mid-2015. Additionally, The Siegel Group, which owns and operates a sizable commercial real estate portfolio consisting of extended-stay hotels and apartments, hotels, retail, office, and development projects, has acquired and opened six new Siegel branded locations in 2017 alone with more to be announced shortly.
Built in phases between 1985 and 1989 and situated on a 5-acre parcel, the 244-unit complex totals approximately 86,790 square feet. Included with the acquisition of the property was a cell phone tower leased to a national operator as well as approximately .70 acres of excess land that the company will either sell off or develop in a build-to-suit arrangement. The well-maintained property is located off the intersection of Interstate 40 and Interstate 25 in close proximity to a number of local attractions including the Albuquerque Convention Center, the University of New Mexico, and historic Old Town.
The Siegel Group, which is known for its signature Siegel Suites brand of apartment communities which provide fully-furnished apartment units and allow for flexible payment options (weekly, bi-weekly or monthly) without requiring a long-term commitment, will be operating this location under its new extended-stay brand, Siegel Suites Select, as Siegel Suites Select Albuquerque. This brand provides short-term daily stays, weekly extended-stay accommodations with housekeeping services while also incorporating the traditional Siegel Suites arrangement. The Siegel Group will be adding a pool to the location as well as installing high-speed Wi-Fi, adding kitchenettes and flat screen televisions to all units and upgrading the existing furniture packages. In addition to making minor cosmetic upgrades, the company will brand the property with signage and façade improvements that are characteristic of the brand.
Stephen Siegel, President of The Siegel Group stated: “We are excited to expand our presence in New Mexico and introduce our newest brand, Siegel Suites Select, to the Albuquerque market. We opened our first branded location in Albuquerque approximately two years ago which has been a success. We’re confident our Select brand will be just as successful.”