Iowa-based Hawkeye Hotels paid $7.1 million for the parking lot at 1320 Glenarm Place in 2019. (BusinessDen file)
An Iowa hotelier is looking to check out of Upper Downtown — after its extended stay didn’t go as planned.
Hawkeye Hotels listed its half-acre corner lot at 1320 Glenarm Place for sale last month.
The site is a parking lot with 77 spaces making nearly $100,000 a year in revenue, according to marketing materials prepared by Henry Group Real Estate. But the lot is entitled to accommodate a 13-story hotel with 400 units.
Hawkeye did not respond to a request for comment. The business purchased the site in early 2019 for $7.1 million, or $325 a square foot.
The company hoped to break ground on a combination Fairfield Inn & Suites/TownePlace Suites in the second quarter of 2020 — but COVID hit first.
“Between the pandemic and the interest rate turn and the marketplace, they put it on hold for a little while, and now they’re looking to sell it,” said Patrick Henry, co-founder of Henry Group.
Marketing materials don’t include a price. Henry said there haven’t been many hotel sales in the area lately.
“There hasn’t been a lot of great comps since the dramatic increase in some of the interest rates, since there’s no capital markets that are interested in putting equity into deals. And therefore, we’re really looking for someone that believes in that immediate area and the convention center and all the stuff that downtown Denver has going for it,” he said.
The lot has been owned by hotel operators since 2015, when Maryland-based Choice Hotels bought it for $7 million.
The parking lot is next to the Denver Press Club, across from the Denver Athletic Club and on the same block as a 21-story Hyatt hotel. Henry has a similar listing just a few blocks away at 606 W. Colfax Ave., the site of a former bank that’s suitable for redevelopment into a hotel or apartment building. It’s been on the market for a little over two years and has had its price slashed “dramatically” over the years.
“I think the entire equity market is sitting on pause right now waiting to see what happens,” Henry said.
Iowa-based Hawkeye Hotels paid $7.1 million for the parking lot at 1320 Glenarm Place in 2019. (BusinessDen file)
An Iowa hotelier is looking to check out of Upper Downtown — after its extended stay didn’t go as planned.
Hawkeye Hotels listed its half-acre corner lot at 1320 Glenarm Place for sale last month.
The site is a parking lot with 77 spaces making nearly $100,000 a year in revenue, according to marketing materials prepared by Henry Group Real Estate. But the lot is entitled to accommodate a 13-story hotel with 400 units.
Hawkeye did not respond to a request for comment. The business purchased the site in early 2019 for $7.1 million, or $325 a square foot.
The company hoped to break ground on a combination Fairfield Inn & Suites/TownePlace Suites in the second quarter of 2020 — but COVID hit first.
“Between the pandemic and the interest rate turn and the marketplace, they put it on hold for a little while, and now they’re looking to sell it,” said Patrick Henry, co-founder of Henry Group.
Marketing materials don’t include a price. Henry said there haven’t been many hotel sales in the area lately.
“There hasn’t been a lot of great comps since the dramatic increase in some of the interest rates, since there’s no capital markets that are interested in putting equity into deals. And therefore, we’re really looking for someone that believes in that immediate area and the convention center and all the stuff that downtown Denver has going for it,” he said.
The lot has been owned by hotel operators since 2015, when Maryland-based Choice Hotels bought it for $7 million.
The parking lot is next to the Denver Press Club, across from the Denver Athletic Club and on the same block as a 21-story Hyatt hotel. Henry has a similar listing just a few blocks away at 606 W. Colfax Ave., the site of a former bank that’s suitable for redevelopment into a hotel or apartment building. It’s been on the market for a little over two years and has had its price slashed “dramatically” over the years.
“I think the entire equity market is sitting on pause right now waiting to see what happens,” Henry said.
