Calare Sells Leominster Industrial Building for $31.5M

Hudson, MA-based Calare Properties has sold 25 Tucker Drive in Leominster, MA to an entity listed as Key Mass LLC, according to Worcester County deed records. Calare originally purchased the single-story contiguous manufacturing, distribution and office space in December 2012 for $11.65 million; Calare's investment was a fraction of its replacement cost in a corporate disposition after sitting vacant for several years.

Located in the center of New England, the property has 28' ceiling heights, 43 dock doors and CSX rail service to the building providing direct loading into the distribution area. Bill Manley, Calare's Managing Partner and CIO, says, "It is a world class facility located in a very business friendly municipality, less than one mile from the interstate."

Built in 1982 with an addition in 1986, Calare invested $4 million in property upgrades after purchasing it in 2012, now selling the asset for nearly three times what it paid for the industrial building. Key Mass LLC bought the industrial building for $31.5 million this month, or roughly $53.57 per square foot. Key Mass LLC is managed by James Wiersma, a broker with Coldwell Banker Woodland-Schmidt in Holland, Michigan, according to Secretary of State records. Stan Johnson Co. represented Calare in the deal.

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Lodging Enterprises Sold to AHIP for $127M

Kansas-based Lodging Enterprises has been sold to American Hotel Income Properties REIT LP (AHIP), led by Canadian hotel veteran Rob O’Neill of Vancouver, B.C., for $127 million. Jones Lang LaSalle’s Hotels & Hospitality Group arranged the sale, led by managing directors Al Calhoun and Mark Fair. Terms of the deal were not disclosed, but AHIP did note that Lodging Enterprises will continue to manage the hotels.

American Hotel Income Properties REIT, launched its initial public offering last month raising nearly $86 million. The offering was underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc., and included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Burgeonvest Bick Securities Limited and Haywood Securities Inc.

Robert O'Neill, Chief Executive Officer of AHIP, commented that, "We are excited about the initial public offering of American Hotel Income Properties REIT LP. The initial portfolio of hotel properties represents a unique and stable platform upon which we intend to further develop AHIP's considerable potential."

Lodging Enterprises owns and operates 32 proprietary branded hotels in 19 states and 24 proprietary branded diners. The sale also includes a large development pipeline of hotels under construction and long-term guaranteed room night contracts with three of the largest Class I U.S. freight railroad companies, according to a Hotels Magazine report. The hotel properties have agreements with several of the largest U.S. railroad operators, Union Pacific Corp., Burlington Northern Santa Fe LLC and CSX Corp., as well as Canadian Pacific Railway Limited, to provide lodging accommodations for railroad employees under contracts stipulating guaranteed minimum occupancies, which provide the REIT with recurring revenue, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.