Marcus & Millichap brokered the sale of the Regency Inn at 1350 E. Ogden Avenue in Naperville, Illinois, for $3.35 million, according to Steven Weinstock, regional manager and first vice president for the firm’s Chicago Oak Brook office. The buyer, Northbrook, Illinois-based MZ Capital Partners, plans to provide 112 micro apartments on the site.
Marcus & Millichap’s Ebrahim Valliani, vice present of investments and director, national hospitality group; Michael Klar, associate; Chris Gomes, senior managing director of investments and Allan Miller, senior vice president of investments, represented MZ Capital as well as the seller, Prime Motel Inc.
“Despite its visible location near the border of Naperville and Lisle, the hotel was not well occupied and had significant deferred maintenance,” said Valliani. “Buyers could not visualize the possibilities, so the property sat on the market for many years before we got involved.”
When Valliani and his team were hired to sell the property, they reached out to Marcus & Millichap’s extensive national network of multifamily investors as well as hospitality buyers and soon had multiple offers. MZ Capital’s proposal to provide high-amenity studio apartments to the site won unanimous approval from the Naperville City Council.
The Regency Inn is a two-story, 122-room exterior corridor hotel at the intersection of Ogden Avenue and North Naper Boulevard. The site offers immediate access to retail, restaurants and entertainment, including the Freedom Plaza and Freedom Commons developments south of Interstate 88. In addition to being near the expressway, the Regency Inn is just a five-minute drive to the Naperville and Lisle Metra stops.
“Ebrahim Valliani and Michael Klar brought us this opportunity and were flawless and professional on execution and bringing the transaction to closing,” said Michael Zaransky, founder and managing principal of MZ Capital.