Phoenix, Ariz. – Byrd Hotel Group has finalized a $20 million sale-leaseback transaction involving four hotel properties in Goodyear. The deal with KawaCapital Management of Florida is an example of the growing sale-leaseback trend in the industry, allowing owners to monetize properties while continuing to operate hotel assets.
“While sale-leasebacks in the hospitality space have become more common across the U.S., this is the first transaction we have seen in a while here in Arizona,” says Jon Grantham with Colliers International in Greater Phoenix. “The seller was able to maximize payout, as well as execute a defeasance of his cross collateralized CMBS. This allowed the seller to prune his portfolio and dispose of a now free and clear asset to utilize otherwise stagnant capital.”
Byrd Hotel Group of Goodyear sold the four properties to Kawa Capital Management. Grantham and James Meng of Colliers International in Greater Phoenix represented the seller in the transaction. Kawa was self-represented.
The properties included in the transaction include:
• Red Lion Inn & Suites at 1313 N. Litchfield Rd. – 90 rooms
• Hampton Inn & Suites at 2000 N. Litchfield Rd. – 110 rooms
• Holiday Inn & Suites at 1188 N. Dysart Rd. – 100 rooms
• Residence Inn at 2020 N. Litchfield Rd. – 78 rooms
The four limited and full-service hotels contain a total of 441,967 square feet of space on approximately 10.14 acres of property.
All were part of the Byrd Hotel Group, formerly doing business as Byrd Enterprises of AZ, Inc. The company selected the Phoenix/Goodyear market because of its strategic growth opportunity to build near the fast-growing Phoenix metro area. Since 1996, Byrd has developed, owned and operated nine hotels.
“We have long-standing relationship with this seller and I have personally watched their family’s portfolio successfully grow,” says Meng. “Kawa Capital was a great fit for the Byrd family and with the sale-leaseback, the seller’s portfolio will continue its healthy expansion. There are many great things ahead for our client.”
About Kawa Capital Management
Kawa Capital Management is an independent asset management firm based in Aventura, Florida. Founded in July 2007 by Daniel Ades and Alexandre Saverin, the firm has grown to over $900 million in assets under management. Kawa is a dynamic and opportunistic company, dedicated to running strong absolute long-term returns. The firm employs a disciplined asset allocation approach with a focus on strategies that are unique and off the radar screen of larger asset managers. The company has a diverse investment strategy, and a strong focus on risk management with a robust operational infrastructure. Our team attempts to take diverse event-driven situations and structure profitable investments for long-term growth through rigorous and persistent monitoring of risk with special emphasis on capital preservation. For more information, visit kawa.com.
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