Rockpoint Sells D.C. Hotel For Discounted Price of $27M
By Nick Trombola August 9, 2024 1:04 pm
reprints
A Washington, D.C., property selling for less than it was purchased for before the pandemic? Call it the new normal.
Boston-based private equity firm Rockpoint has unloaded the Beacon Hotel at 1615 Rhode Island Avenue NW for $26.8 million, or $13 million less than what it paid for the property in 2018, according to the Business Journal. The 2018 sale price is listed on property records as about $39.8 million. Rockpoint acquired the hotel from Capital Hotel & Suites, which exited the industry at the time after its owners decided to retire.
An affiliate of New York-based investment firm Three Wall Capital acquired the 199-room hotel. The Beacon adds to Three Wall’s portfolio of 83 hotels around the country, though it’s the firm’s first in the District.
Three Wall financed the deal via a $30.5 million loan from investment company EquityMultiple, per the Business Journal. Other details of the financing were not immediately available.
A spokesperson for Rockpoint declined to comment on the deal, while Three Wall did not immediately respond to requests for comment.
The Beacon is just the latest hotel to sell for a discount in D.C.. The former Trump International Hotel, these days branded as a Waldorf Astoria, was scooped up at foreclosure auction by the building’s former lender BDT & MSD Partners for $100 million.
CGI Merchant Group acquired the leasehold interest on the hotel (which is formally owned by the federal government) from the Trump Organization in 2022 for $375 million, though it defaulted on a $285 million loan tied to the property less than two years later.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
