Residence Inn Phoenix Desert View at Mayo Clinic sells for $50.5M
Dreamscape Companies, a New York-based real estate and investment firm, today announces its first foray into Arizona’s red-hot Phoenix market with the acquisition of the Residence Inn Phoenix Desert View at Mayo Clinic, an extended-stay hotel. With the Mayo Clinic preparing to undergo a massive renovation of at least $700 million that will drastically expand its patient capacity, the corresponding hotel presented the perfect point of entry for the firm into this key tertiary market. Dreamscape paid $50.5 million for the property. The hotel was sold by the Robert Finvarb Companies, based out of Miami, Florida. The deal was brokered by Adam Etra, Mark Schoenholtz and Nick Pappas at Newmark.
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Phoenix has long signified a strong point of interest for Dreamscape due to its rapid population, employment and retail growth. In recent years the Valley of the Sun has garnered significant interest from major brands and national companies, many of which have relocated to the area to take advantage of its prime location and lower rents. This relocation flurry, in addition to a massive boom in the retail industry, is heavily driving the city’s sustained development as well as generating an astonishing 25-percent rent increase year-over-year. These factors combined position Phoenix as an exceptional investment opportunity and prime market for Dreamscape’s continued expansion efforts.
“A cornerstone of Dreamscape’s philosophy is its focus on gateway cities and up-and-coming markets, and we’ve had our eye on Phoenix for some time as it aptly fits this bill,” explained Eric Birnbaum, CEO and Founder of Dreamscape. “It’s an incredibly attractive city due to its location and recent explosion in growth. Additionally, our projections show a full-scale recovery in the hotel sector, which is already underway. These elements together made the Residence Inn Phoenix Desert View at Mayo Clinic the perfect property for our first acquisition in the area, as well as the ideal point of entry into a market we anticipate becoming deeply entrenched in.”
“This acquisition represents a unique opportunity to acquire a well performing asset on the grounds of the Mayo Clinic, a world-renowned medical facility. The Mayo Clinic is planning a significant expansion which should further improve property operations.” said Scott Broder, President of Dreamscape Hospitality. “Given the challenging capital market environment, we will continue to target new acquisitions with assumable fixed-rate debt financing.”
Located at 5665 E. Mayo Boulevard, the Residence Inn Phoenix Desert View at Mayo Clinic signifies the only hospitality offering in Phoenix within walking distance of the acclaimed Mayo Clinic. The sought-after healthcare establishment is currently undergoing a $700M renovation that will increase its capacity nearly 50-percent and thus generate an even greater need for hotel options in the immediate area as the number of patients; corresponding family and friends; staff; and students increase dramatically.
Residence Inn Phoenix Desert View at Mayo Clinic has been outfitted with 208 guest rooms, including pet-friendly suites intended for extended stay guests that are fully equipped with kitchens and complimentary high-speed Wi-Fi access. A state-of-the-art fitness center with cardio machines and free weights offers health-conscious visitors the perfect opportunity to work up a sweat, while an outdoor pool, featuring complimentary towels, lounge chairs and cabanas, will appeal to any and all guests looking to lounge poolside while soaking up Arizona’s powerful rays. Those in town visiting the Mayo Clinic will enjoy the utmost convenience thanks to the hotel’s complimentary shuttle service to the hospital.
Incredibly well situated, Residence Inn Phoenix Desert View also offers easy access to some of the city’s most popular attractions including the Musical Instrument Museum and the Scottsdale Sports Complex.