The Apple REIT Companies headquarters downtown.
A local hotel owner is getting back into the energy business.
Apple REIT Ten, part of the downtown-based Apple REIT Companies, said last week that it is investing up to $100 million to buy an interest in an oil and gas prospector.
Apple Ten Ventures Services, a subsidiary of the $700 million Apple REIT Ten fund, bought Cripple Creek Energy LLC, which was created “solely for the purpose of acquiring, owning, managing, operating, developing, drilling and disposing of oil and gas leasehold acreage and producing and selling oil, gas and other minerals,” according to a Securities and Exchange Commission filing.
Apple REIT said that Cripple Creek would use its investment – $80 million up front and $20 million next month – to develop the land for potential production.
Kelly Clarke, a spokesperson for Apple REIT, said the company would not comment on the deal beyond what’s in the SEC filing.
Clarke would not identify the location of the land the company has invested in. Cripple Creek, according to the filing, is tied to Eastern Colorado Holdings. Apple REIT was turned on to the deal by one of its directors, Anthony Keating. He’s a principal with Rock Creek Capital, a real estate, oil and gas investment company.
The Apple REIT Companies own dozens of hotels across the country through its four remaining funds. It has rarely ventured outside the realm of hotels for its acquisitions, although it has dabbled in gas once before.
Last year, Apple REIT Nine sold hundreds of acres of natural gas fields in Fort Worth, Tex., for $198 million. It had owned the property since 2009 and had leased it to Chesapeake Energy.
Apple REIT Ten is the company’s only fund open to new investors. It was launched in 2011 and has acquired 34 hotels in 15 states. It has raised more than $700 million from investors.
Apple REIT Six was sold last month in a $1.2 billion deal.
Three of the company’s other funds, not including Apple REIT Ten, disclosed this year that they are being investigated by the SEC for issues related to the adequacy of certain disclosures in their regulatory filings beginning in 2008.
The Apple REIT Companies headquarters downtown.
A local hotel owner is getting back into the energy business.
Apple REIT Ten, part of the downtown-based Apple REIT Companies, said last week that it is investing up to $100 million to buy an interest in an oil and gas prospector.
Apple Ten Ventures Services, a subsidiary of the $700 million Apple REIT Ten fund, bought Cripple Creek Energy LLC, which was created “solely for the purpose of acquiring, owning, managing, operating, developing, drilling and disposing of oil and gas leasehold acreage and producing and selling oil, gas and other minerals,” according to a Securities and Exchange Commission filing.
Apple REIT said that Cripple Creek would use its investment – $80 million up front and $20 million next month – to develop the land for potential production.
Kelly Clarke, a spokesperson for Apple REIT, said the company would not comment on the deal beyond what’s in the SEC filing.
Clarke would not identify the location of the land the company has invested in. Cripple Creek, according to the filing, is tied to Eastern Colorado Holdings. Apple REIT was turned on to the deal by one of its directors, Anthony Keating. He’s a principal with Rock Creek Capital, a real estate, oil and gas investment company.
The Apple REIT Companies own dozens of hotels across the country through its four remaining funds. It has rarely ventured outside the realm of hotels for its acquisitions, although it has dabbled in gas once before.
Last year, Apple REIT Nine sold hundreds of acres of natural gas fields in Fort Worth, Tex., for $198 million. It had owned the property since 2009 and had leased it to Chesapeake Energy.
Apple REIT Ten is the company’s only fund open to new investors. It was launched in 2011 and has acquired 34 hotels in 15 states. It has raised more than $700 million from investors.
Apple REIT Six was sold last month in a $1.2 billion deal.
Three of the company’s other funds, not including Apple REIT Ten, disclosed this year that they are being investigated by the SEC for issues related to the adequacy of certain disclosures in their regulatory filings beginning in 2008.