Despite the troublesome press one of its sister funds has received lately, Apple REIT Ten is still gobbling up hotels.
The local real estate investment trust, the newest of five such funds run by the locally based Apple REIT Companies, closed on the purchase of five hotels last week, including one in Richmond for $11 million.
According to an SEC filing, Apple REIT Ten closed the purchase of five hotels for a total of $62.5 million.
Among these properties was an $11 million purchase for a SpringHill Suites near Mayland Road and Gaskins Drive in Glen Allen.
It’s the second local hotel to be purchased by an Apple REIT. Apple REIT Seven bought the downtown Richmond Marriott for $53 million in 2008.
The Apple REIT Ten purchases come amid a bit of controversy surrounding Apple REIT Eight and the broker who sells Apple REIT’s shares to investors.
Apple REIT Ten is the newest in the company’s portfolio. Its shares are still being sold to investors by David Lerner Associates, a New York firm that made headlines last week after federal regulators accused it of misleading investors when selling shares of Apple REIT Eight.
The financial health of Apple REIT Eight was recently put under the microscope by the New York Times.
Apple REIT Ten was launched in January and has raised $307 million. Its goal is to sell $2 billion worth of shares. With these latest deals, it owns nine hotels across the country and has contracts pending for the purchase of several more.
In addition to the local SpringHill Suites, Apple REIT Ten’s latest deal included another SpringHill Suites in Knoxville, Tenn.; a Hilton Garden Inn in Gainesville, Fla.; a TownePlace Suites in Pensacola, Fla.; and a Hampton Inn & Suites in Mobile, Ala.
Apple REIT said the purchases were funded by the proceeds from its ongoing share offering.
Despite the troublesome press one of its sister funds has received lately, Apple REIT Ten is still gobbling up hotels.
The local real estate investment trust, the newest of five such funds run by the locally based Apple REIT Companies, closed on the purchase of five hotels last week, including one in Richmond for $11 million.
According to an SEC filing, Apple REIT Ten closed the purchase of five hotels for a total of $62.5 million.
Among these properties was an $11 million purchase for a SpringHill Suites near Mayland Road and Gaskins Drive in Glen Allen.
It’s the second local hotel to be purchased by an Apple REIT. Apple REIT Seven bought the downtown Richmond Marriott for $53 million in 2008.
The Apple REIT Ten purchases come amid a bit of controversy surrounding Apple REIT Eight and the broker who sells Apple REIT’s shares to investors.
Apple REIT Ten is the newest in the company’s portfolio. Its shares are still being sold to investors by David Lerner Associates, a New York firm that made headlines last week after federal regulators accused it of misleading investors when selling shares of Apple REIT Eight.
The financial health of Apple REIT Eight was recently put under the microscope by the New York Times.
Apple REIT Ten was launched in January and has raised $307 million. Its goal is to sell $2 billion worth of shares. With these latest deals, it owns nine hotels across the country and has contracts pending for the purchase of several more.
In addition to the local SpringHill Suites, Apple REIT Ten’s latest deal included another SpringHill Suites in Knoxville, Tenn.; a Hilton Garden Inn in Gainesville, Fla.; a TownePlace Suites in Pensacola, Fla.; and a Hampton Inn & Suites in Mobile, Ala.
Apple REIT said the purchases were funded by the proceeds from its ongoing share offering.
If anything has been proven about Glade Knight and his management of these purchases, it is that he uses no due-diligence whatsoever, and doesn’t care what is going on in the real estate markets. A review of Apple 8 and 9 SEC filings which show the purchase and closing dates of the hotels in these earlier REITs, show Mr. Knight buying steadily on the way to the top of the real estate bubble and all through the financial crisis of 2008 and 2009 as the market self-destructed. Nothing stopped his purchases- not the banking crisis, not the demise of Fannie… Read more »