German fund manager Union Investment is buying a hotel development in Washington DC for around $120m (€97.6m).
Union Investment said it has agreed to buy the Thompson-branded lifestyle hotel development from Gone Yard Hotel Owner, a joint venture between Geolo Capital and JW Capital Partners.
Gone Yard will develop and operate the 12,000sqm property in Navy Yard.
Transfer of the hotel will take place upon opening of the 11-storey hotel, which is scheduled for the beginning of 2020.
Once completed, the project will be added to the portfolio of the open-ended real estate fund UniImmo: Global, Union Investment said.
Following hotel acquisitions in Boston, Chicago, New York and Seattle, Washington D.C. is now the fifth hotel investment location in the US chosen by Union Investment, it said.
Andreas Löcher, the head of investment management hospitality at Union Investment Real Estate, said: “The Thompson lifestyle brand is an excellent fit with this location and also with our existing hotel portfolio.”
The hotel will be leased to the joint venture of Geolo, the San Francisco-based private equity investment arm of the John A. Pritzker Family Office; and JW Capital, a Boston-based real estate investment group.
Union Investment currently holds 66 hotel properties across 9 national markets in its actively managed funds.
The hotel portfolio is worth a total of EUR3.9bn, with further expansion of the US segment of the portfolio being a strategic priority.