Blackstone Group sold a Residence Inn by Marriott in Boca Raton for $14.25 million to a group of South Florida investors who plan to redevelop it into a mixed-use project.
The New York-based private equity giant sold the 120-room extended-stay hotel at 525 Northwest 77th Street to Shane Neman, principal of Neman Ventures; and Richard Waserstein and Mauricio Bello of Waterstone Capital. The deal equates to $118,750 per key.
The sale signals growing interest in the Boca Raton hotel market as the city attracts more technology and finance companies and corporate executives require lodging for extended periods of time.
The Residence Inn by Marriott Boca Raton sits on 4 acres near Congress Avenue. Built in 1988, it last traded for $12 million in 2014.
Neman, Waserstein and Bello plan to redevelop the project in three phases with an expected completion date of 2030, according to a press release. Part of the redevelopment will include a multifamily complex adjacent to the extended-stay hotel.