Hotel Franchise Buys Properties From Fort Smith Holding Company
by May 26, 2014 12:00 am 106 views
A pair of extended-stay hotels near Interstate 49 in Washington County recently sold back to the original developer for a combined price of $4.84 million.
Wichita, Kansas-based Value Place, the largest extended-stay franchise in the U.S., paid $2.42 million apiece for its developments at 4397 Dixie Industrial Ave. in Springdale and at 2638 W. Old Farmington Road in Fayetteville.
Simmons First National Bank of Pine Bluff funded the deal with a mortgage of $4.85 million.
CBRE Group Inc. represented the seller.
Both four-story developments have 121 units and are approximately 43,000 SF.
Fort Smith holding company CSK Hotels Inc., which acquired the land for both developments in 2006 in separate deals totaling $983,000, was the seller.
CSK also sold a 3.59-acre Value Place development in Little Rock back to the company for $4.08 million. CSK still owns Value Place properties in Bentonville and Memphis.
Value Place chief operating officer Kyle Rogg said the company announced a formal strategy shift earlier this year to increase its national presence by targeting markets for corporate-owned and franchise properties.
Value Place now owns 78 of its 184 locations throughout the U.S.
The company was founded in 2002 by entrepreneur Jack DeBoer — known in the industry as the originator of extended-stay lodging and founder of Residence Inn (now owned by Marriott), Summerfield Suites (now part of Hyatt), and Candlewood Suites (now an Intercontinental brand).