Hospitality and multifamily property investor PEG Companies has extended its geographic footprint across the US with the acquisition of an eight-hotel portfolio.
PEG and PEG Capital Partners Fund III have led a group of investors, with financing from Cantor Commercial Real Estate, to buy the portfolio from a major global real estate investment group.
The deal was done through brokers Academy Commercial and Berkadia, along with Ares Management.
No financial details were disclosed.
The portfolio includes seven Residence Inns by Marriott and one Courtyard by Marriott, totalling 1,052 hotel rooms.
The properties are located in Sacramento, Santa Fe, St. Louis, Chicago, Boston, Tampa, Mesa and Charlotte.
PEG CEO Cameron Gunter, said: “We have a distinct approach for creating value for our investors.
“This portfolio represents significant time and collaboration by strategically acquiring well-performing Marriott properties in good locations and strong markets.”
PEG’s CIO Soren Halladay, said: “One of the compelling aspects of this investment is the myriad of exit strategies available with these properties.
“Our strong relationship with Marriott, coupled with our investment and development capabilities across multiple asset classes, allows us to be creative with not only the properties and their current uses but also further development opportunities within these specific markets. You have to be creative in today’s market in order to be successful.”
Founded in 2003, PEG’s current $1.4bn pipeline includes assets in multifamily residential, student housing, mixed-use and hospitality.