Legendary Capital has sponsored the 175-room Holiday Inn El Paso Sunland Park (HI-El Paso) acquisition in a $9.7 million transaction.
The deal used Legendary Capital’s proprietary Equity Preservation UPREIT (EPU) mechanism — where HI-El Paso ownership contributed their property in exchange for a special class of Transition Partnership Units — which potentially preserves the contributor’s equity as the property restabilizes. The consideration also included the assumption of $7.9 million of the existing $8.4 million loan secured by the HI-El Paso and payment of $300,000 cash to the owner. The current professional management company, Elevation Hotel Management, will continue managing the property, together with NHS, LLC dba National Hospitality Services.
This is the second transaction Legendary Capital has sponsored in the past three months using its patent-pending EPU Section 721 UPREIT contribution structure, following the recently acquired Courtyard by Marriott
