The Godfrey Hotel Boston acquired in sale and leaseback deal

George Sell By George Sell
20 December 2015 | Updated 20 December 2015

US: The Godfrey Hotel in Boston has been sold to Germany's Union Investment Real Estate.

US: The Godfrey Hotel in Boston has been sold to Germany's Union Investment Real Estate.

The vendors were a joint venture of Oxford Capital Group, LLC and an affiliate of Walton Street Capital, LLC. The Godfrey Hotel Boston is a 242-room lifestyle hotel located in the city's Downtown Crossing neighbourhood, and is scheduled to open in January 2016.

"We are delighted to have reached this agreement with Union Investment for The Godfrey Boston to be its first foray into the United States' hotel market. We are confident in the future success of The Godfrey and that the property, brand, and management platform will benefit from the transaction," said John Rutledge, founder, president and CEO of Oxford Capital Group. "After thoroughly vetting a large number of interested investors and suitors, we chose Union Investment for a variety of reasons, including its commitment to a highly professional transaction process, the scale and quality of its organisation and people, and its competitive pricing. And as always, we're looking for win-win relationships with our investors."

The transaction is structured as a 25-year lease covering the total rentable area of 135,000 square feet based on an annual fixed rent. An additional profit share component documents the spirit of aligned interests between Oxford Capital, Walton Street Capital, and Union Investment.

"The international growth of our hotel investment activities is based on a clear strategy of expanding our hotel portfolio and diversifying even further across all asset classes," said Andreas Locher, head of investment management hotels at Union Investment Real Estate GmbH, Hamburg. "Our long-standing presence in the US office market and our strong commitment, both in metropolitan areas and in gateway cities, is successfully opening doors and enabling us to tap into attractive hotel markets in North America."

The Godfrey Hotel Boston is the second Godfrey Hotel property developed by Oxford Capital Group, LLC, with the flagship property having opened in February 2014 in Chicago's River North neighbourhood. Oxford is evaluating additional locations in a number of major markets around the US.

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