Argosy Invests in Sheraton Jacksonville
On June 12, 2015, Argosy Real Estate Partners III, L.P. and its parallel Funds (“AREP III”) made a controlling investment in the acquisition and renovation of a 159-room Sheraton hotel located in Jacksonville, Florida. AREP III secured the property at favorable pricing relative to replacement cost and comparable sales.
The hotel was developed in 2008 and includes a full-service restaurant, meeting space, a heated indoor pool, and a fitness center. The hotel currently achieves strong occupancy and offers a stable source of in-place cash flow with upside potential from renovation, future rate growth, and improved management. The business plan includes a full renovation of the guestrooms, common areas, restaurant and meeting space to meet current Sheraton brand standards.
The property is located approximately ten miles southeast of downtown Jacksonville within the Deerwood Park/St. John’s Town Center submarket, the strongest office and retail corridor within the Jacksonville metro. Lodging demand generators include approximately 3.4 million sf of office space located within five miles of the property and the St. John’s Town Center, a 1.2 million sf upscale super-regional, open-air shopping mall located within 0.5 miles of the site.
AREP III partnered with Peachtree Hotel Group, a private owner/operator of hotels headquartered in Atlanta, Georgia. Argosy has successfully partnered with Peachtree on three previous investments. Peachtree focuses on the acquisition, development, and management of premium-branded, select-service and extended-stay hotel assets in the Southeast. Its portfolio includes four Florida hotels, one of which is a Courtyard by Marriott in Jacksonville. Peachtree will provide on-site property management services.