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Location:
Bethesda, Maryland
Date of Acquisition:
December 22, 2004
Seller:
Host Marriott
Primary Focus:
Asset management and construction management
Capital Projects for 2005 and 2006:
$13.5 million
In December 2004, a joint venture of Northview Hotel Group and a fund managed by Westbrook Partners, acquired the leasehold interest in the Bethesda Marriott Hotel from Host Marriott. The AAA Four Diamond and Mobile Four Star Hotel, is located at 5151 Pooks Hill Road, Bethesda, Maryland. The hotel comprises 407-keys, 23 meeting rooms with a total of 16,000 square feet, indoor and outdoor swimming pools and a newly created restaurant and bar, AGIO. The Hotel is operated by Marriott International under a long term management agreement. Debt financing for the hotel was provided originally by Morgan Stanley Mortgage Capital, and subsequently (following a refinance in 2006), Barclays Capital.
During 2005/6, Northview oversaw a $13.5m renovation of the hotel’s guest rooms and HVAC systems, plus a major project that involved the complete renovation of the hotel’s public space and plant upgrade.
In June 2005, the venture was successful in acquiring the fee to the property, and Northview was able to negotiate a revision to the existing management contract with Marriott International, allowing for the creation of a condominium structure dividing the property into two separate parcels. The hotel will remain on one parcel, while the second parcel will be developed as condominium units, with approximately 400,000 square feet of saleable area. In June 2006, the venture entered into a new joint venture with a local residential developer who will lead the re-zoning effort for the condominium parcel.
In June 2006, Northview oversaw the refinancing of the hotel’s debt with Barclays Capital, which resulted in the return of the 135% of the initial invested capital to the venture partners.
In August 2007, the Hotel was sold. The Venture continues to own the adjacent land parcel, which is being developed in conjunction with Quadrangle Development Corporation.
