For a short time, the Apple REIT Companies dabbled in more than hotels.
In 2009, Apple REIT Nine, one of the downtown-based company’s five funds, got its hands into the natural gas business. It was the first and only time the REIT ventured outside the domain of buying hotels.
Two years later, it has a deal in the works to go back to its bread and butter.
The REIT said in an SEC filing Monday that it has entered into a contract to sell 110 parcels of land it owns in the Fort Worth area for $198.4 million.
According to past SEC filings, Apple REIT Nine bought 410 acres in Fort Worth in April 2009. It then immediately leased the land to Chesapeake Energy for natural gas production.
The SEC filing released Monday was scant on details, only saying that the land is leased to a third party and that the potential buyer is an entity known as 111 Realty Investors, LP.
It also stated that an undisclosed partner of that entity is a member of the board of directors of Apple REIT Ten.
One of those board members, Anthony Francis “Chip” Keating III, worked for Chesapeake Energy from 2007 to 2010. Keating is now a principal at the Rebkee Company, a commercial real estate development firm based in Midlothian.
Apple REIT spokesperson Kelly Clarke said the company is under a confidentiality agreement due to the pending contract and would not comment further on the deal.
The REIT’s investment in the Texas land seems to have been a good one, according to filings. Apple REIT Nine paid $145 million for the land in 2009. At the proposed sale price, that’s a $53 million return in a little more than two years.
The land was also generating income during those two years. According to its filings, Chesapeake Energy, one of the largest energy companies in the United States, made lease payments to Apple REIT Nine of $15.2 million in 2010 and $11.3 million in 2009.
The REIT’s main business is buying and operating hotels. It owns 86 hotels in 27 states.
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].
For a short time, the Apple REIT Companies dabbled in more than hotels.
In 2009, Apple REIT Nine, one of the downtown-based company’s five funds, got its hands into the natural gas business. It was the first and only time the REIT ventured outside the domain of buying hotels.
Two years later, it has a deal in the works to go back to its bread and butter.
The REIT said in an SEC filing Monday that it has entered into a contract to sell 110 parcels of land it owns in the Fort Worth area for $198.4 million.
According to past SEC filings, Apple REIT Nine bought 410 acres in Fort Worth in April 2009. It then immediately leased the land to Chesapeake Energy for natural gas production.
The SEC filing released Monday was scant on details, only saying that the land is leased to a third party and that the potential buyer is an entity known as 111 Realty Investors, LP.
It also stated that an undisclosed partner of that entity is a member of the board of directors of Apple REIT Ten.
One of those board members, Anthony Francis “Chip” Keating III, worked for Chesapeake Energy from 2007 to 2010. Keating is now a principal at the Rebkee Company, a commercial real estate development firm based in Midlothian.
Apple REIT spokesperson Kelly Clarke said the company is under a confidentiality agreement due to the pending contract and would not comment further on the deal.
The REIT’s investment in the Texas land seems to have been a good one, according to filings. Apple REIT Nine paid $145 million for the land in 2009. At the proposed sale price, that’s a $53 million return in a little more than two years.
The land was also generating income during those two years. According to its filings, Chesapeake Energy, one of the largest energy companies in the United States, made lease payments to Apple REIT Nine of $15.2 million in 2010 and $11.3 million in 2009.
The REIT’s main business is buying and operating hotels. It owns 86 hotels in 27 states.
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].