The closing of an investment fund for a DoubleTree by Hilton near the Dallas-Fort Worth airport marks the first successfully funded property for commercial real estate crowdfunding platform Acquire Real Estate.
The DoubleTree by Hilton DFW Airport North is a 282-room, eight-story hotel adjacent to the airport. Acquire Real Estate provided $262,500 in funding, with individual investors contributing between $5,000 and $75,000.
In a release Acquire Real Estate said investors are projected to make more than 20 percent paid quarterly over a seven to ten-year term.
The quick closing was credited to investors on the hunt for better returns than stocks have been delivering of late, Acquire Real Estate’s CEO said.
“With the hospitality industry continuing to perform well,we’re seeing growing demand from our investors for high-quality hotel opportunities in strong-performing markets,” Steven Bettinger explained. “With its excellent location and positive cash flow, theDoubleTree by Hilton DFW Airport was a natural fit for the Acquire platform.”
The property is within two miles of the airport and close to several large companies, including Microsoft, Verizon and Siemens.
Acquire Real Estate said recent research by PKF Hospitality Research revealed current hotel room rates are higher than pre-recession levels. Hotels in airport and suburban areas are best situated to enjoy above-average revenue per available room through 2018, they added.
Acquire Real Estate first vets and purchases properties before offering them for investment.