SOLD! Lexington Inn & Suites in Billings, Montana

SOLD! Lexington Inn & Suites in Billings, Montana

SOLD: Lexington Inn & Suites in Billings Montana

Price: $5,800,000

Father and Sons, LLC, recently purchased the Lexington Inn & Suites in Billings, Montana from original developer and owner TMS Inc., in a transaction closing on June 11, 2014.

TMS Inc., built the four-floor, 24,658 sq. ft., building in 2006. The transaction, which totaled $5,800,000 (including a supplemental purchase adding more land to the property) was able to close due to excellent broker cooperation across state lines.

TMS Inc. developed The Lexington Inn & Suites in 2006 to capitalize on growing tourism in Billings, MT. The property, which includes a fitness room, indoor swimming pool and a business center, is located in the southern part of the city, just off I-90.

Included in the transaction was a supplemental land deal, which was integral in leading the sale to close. Despite the 1.38 acre lot the Lexington in was situated on, there was not enough room for sufficient parking. To make room for the necessary parking Portland, OR based broker, Brian Resendez negotiated a land transaction to purchase a .29 acre plot of land directly next to the sale site.

Mr. Resendez is a broker specializing in hospitality assets in the Pacific Northwest. He was brought in as a cooperative broker by Fathers and Sons, LLC and with permission from the selling broker Chuck Platt, a Montana based broker.

The transaction valued the rooms at $66,667 with a cap rap of 10.7%, which is almost a full two points above the national average of 8.8% in 2013 according to the Hotel Transaction Almanac, a report from STR Analytics. Chuck Platt of RE/MAX of Billings represented the seller, while Brian Resendez of Sperry Van Ness|Bluestone in Portland, Oregon represented the buyer in the transaction.