United Properties signed a purchase agreement with private REIT CRI Income in early September to acquire the Days Hotel on the edge of the University of Minnesota Campus in Minneapolis.
Due diligence is currently underway, a process that is expected to take 60 to 90 days. A closing date has not yet been set, but is anticipated in late December or early January. The property was listed for sale in June by Jon Ruzicka of Marcus & Millichap Real Estate Investment Services.
“We view this as a great near-term investment opportunity in a prime location, with potential for future redevelopment. It’s a property we have studied for some time,” said Brandon Champeau, assistant vice president with United Properties, in a written statement. “The operating income from the hotel will allow us the luxury of being patient as the company evaluates the property’s redevelopment potential over the next several years.”
If completed, this would represent United Properties’ first hotel acquisition. Days Hotel is a 107,000-square-foot six-story hotel on 2.45 acres with 130 guest rooms and a restaurant. United Properties would maintain the Days Hotel and make building renovations. It will retain the current management company to run it.
