In a $55 million deal, Graduate Hotels purchased the historic Hotel Deca in Seattle’s University District from LaSalle Hotel Properties on Jan. 20th. The per room sale price comes to $348,101 per room.
Graduate Hotels is affiliated with Chicago-based AJ Capital Partners and LaSalle Hotel Properties is affiliated with LHO Badlands LLC, the selling entity. According to public records, the total purchase price was $55,000,000 but $10.4 million was deducted in personal property, resulting in a taxable amount of $44.6 million. Included in the deduction of personal property is $1.975 million in tangible personal property and $8.425 million in intangible personal property including Goodwill.
Public record state that all tangible and intangible personal property include equipment, appliances, machinery, furniture, fixtures, the right to use telephone numbers and post office boxes, all trade names, customer databases and lists, copyrights, symbols, logos, service marks and trademarks, email addresses specific to the Hotel and the hotel’s website and URL.
LaSalle Hotel Properties purchased the property for $25.8 million in 2005.
Located at 4507 Brooklyn Ave. N.E., the 16-story Hotel Deca has 158 rooms, 5,500 square feet of meeting space and panoramic views of the city skyline, according to LaSalle’s Web site. The website points to the hotel’s proximity to the University of Washington and downtown Seattle. Deca underwent renovations in 2013 and is currently managed by Noble House Hotels and Resorts.
Graduate Hotels is a chain of six hotels in college towns ranging from Ann Arbor, Michigan to Tempe, Arizona. According to its Web site “launched in 2014, Graduate Hotels is a new, boutique hotel collection targeting college towns across America. Each Graduate Hotel is part of a well-curated, thoughtfully crafted collection of hotels celebrating and commemorating the optimistic energy of its community while offering an extended retreat to places that played host to the best days of our lives.” The company also has five additional college town hotel acquisitions in the pipeline for 2017.
LaSalle owns another hotel in the Seattle area at 1007 First Avenue. The 121-luxury room Alexis Hotel is a boutique hotel in downtown Seattle and is close to Pike Place Market, the Space Needle and the Waterfront. The company’s Web site states the hotel offers 2,900 square feet of meeting space as well as a fitness center equipped with a climbing wall and the Chroma Salon and Spa. The hotel is managed by Kimpton Hotel & Restaurant Group, LLC.
