IN-DEPTH: Walton Street sells Phoenix area resort for $308m
Walton Street Capital has sold the 65-acre resort property Fairmont Scottsdale Princess in Scottsdale, Ariz. Here’s an in-depth look at the transaction.
The 650-unit hotel was sold to Walton Street’s joint venture partner, Strategic Hotels & Resorts, making the hospitality firm the sole owner. The transaction valued the property at for $308 million, or $473,077 per unit. All loans were assumed; Citigroup had financed a $140 million first mortgage in 2006.
The firms were equal partners in the joint venture, with Strategic Hotels serving as the managing member and as the property’s asset manager. Walton Street and Strategic Hotels became partners in the asset in 2011 as part of a debt-for-equity swap deal to recapitalize the hotel. The recapitalization included an amendment and extension of th