Lightstone Group Acquires Another Hotel Mortgage Note
To strengthen its position in the hospitality sector, the Lightstone Group has closed on a senior mortgage acquisition secured by the Holiday Inn Express Hotel & Suites Tower Center.
The New York-based real estate company purchased the East Brunswick, N.J., note for approximately $5.6 million, with 64% of the note as an unpaid balance. The Lightstone Value Plus Real Estate Investment Trust assisted the company with its acquisition.
“The acquisition of this loan presented a strong opportunity to invest in a high-quality Class A hotel property on a discounted basis,” said Ryan Colbert, an acquisition officer at The Lightstone Group.
Originally constructed in 2004, the hotel features a total of 100 guest rooms, including 32 suites. The deal supports the company’s two main business goals, which consists of focusing on the hospitality industry and increasing its visibility in the New York area, particularly within the hotel sector.
This acquisition marks the second note collateralized by a hotel property and fourth hospitality the company has purchased since 2007. Other hotels the company has bought include a senior mortgage secured by the 141-room Fairfield Inn in East Rutherford, N.J., a 125-room limited service TownePlace Suites by Marriott in Metairie, La., and the 366-room CoCo Key Hotel & Water Resort in Danvers, Ma.