MINNEAPOLIS (Sept. 19, 2013) – United Properties announced today that it signed a purchase agreement with private REIT CRI Income last week to acquire the Days Hotel on the edge of the University of Minnesota Campus, at 2407 University Ave. SE, 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.
“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, United Properties. “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-sq.-ft., six-story hotel on 2.45 acres with 130 guest rooms and a restaurant. United Properties would maintain the Days Hotel, make building renovations, and intends to retain the current management company to run it.
“The property has been operating as a successful campus hotel for many years now, and with planned light rail adjacent to the site and the Minnesota Vikings use of TCF Bank Stadium in 2014-2015, we believe the hotel will only get better,” said Champeau.
About United Properties
United Properties, based in Minneapolis, Minn., specializes in commercial real estate development and investment. Since 1975, United Properties has provided development services for the retail, residential, office, medical and industrial sectors. In addition to a large presence in the Minneapolis-St. Paul market, United Properties’ Colorado division develops retail properties as well as office and industrial buildings. Formed in 1916, the United Properties investments group acquires, manages, finances and disposes of the company’s real estate investments, which includes nearly 60 office, medical, industrial and retail assets in Minnesota, Wisconsin and Colorado. For more information, visit www.uproperties.com.