SOUTH BEND, Ind., – JULY 24, 2017 – Ten-X Commercial, the nation’s leading online real estate digital marketplace, announces the closing of DoubleTree by Hilton South Bend, a 291-room hotel less than 2 miles from the University of Notre Dame. The Hotel Group was the seller, and the buyer was United Capital Corp. Nate Sahn of CBRE brokered the transaction.
DoubleTree by Hilton South Bend was sold using Ten-X Commercial’s Managed Bid marketplace solution, which provides more control and transparency to sellers, giving them additional confidence that the market delivered the best pricing possible. After a series of indicative bids, shortlisted buyers had a due diligence and contract review period before auction.
Situated along the St. Joseph River, DoubleTree by Hilton South Bend is positioned as the city’s leading full-service hotel. It is part of the 1st Source Center, a two-building complex housing numerous businesses, and also is connected via skywalk to the Century Center Convention.
“The combined efforts of Ten-X and CBRE cast an extremely wide net in order to source the best possible buyer for our institutional-quality asset. We were very successful at generating interest from potential buyers located across the country, including some international groups, and ultimately received a winning bid from an investor in Chicago,” said Anthony Falor, a managing director at Ten-X Commercial. “After determining that the Managed Bid method would be most effective at finding the right buyer, our team worked with CBRE on the entire process, from pre-marketing and due diligence all the way to closing.”
“The Hotel Group evaluates its portfolio on a regular basis to determine which owned assets may be sold opportunistically as part of our strategic plan. Throughout this process, we determined we were in the right part of the cycle to sell the DoubleTree by Hilton South Bend and chose Ten-X to ensure we maximized our sales price and were able to reach the largest group of high-quality, pre-qualified buyers,” said Douglas Dreher, President & CEO of The Hotel Group. “Ten-X exceeded expectations on all levels with the successful sale of our property and demonstrated an ability to reach a wide audience sourcing not only a number of high-quality buyers, including many who may not have been top of mind for our asset. Ten-X delivered on assisting us with the successful close on the sale of our asset to a qualified buyer while maximizing our return on investment.”
“Utilizing the Ten-X Commercial marketplace helped us reach a very large group of qualified buyers for this property, which was ultimately sold to an active Ten-X buyer,” said CBRE’s Nate Sahn, who brokered the deal. “By coupling CBRE’s local market expertise with Ten-X’s innovative approach and vast network of buyers, we were able to close a deal that maximized the value of this asset.”
According to Ten-X Research, the sale comes amid improving conditions for hoteliers in South Bend. Employment across the city’s leisure and hospitality sector has grown 25 percent since the 2009 recession, and passenger traffic at South Bend International Airport jumped 2.6 percent during 2016. According to Real Capital Analytics, the 12-month rolling average of sales price per key rose 24 percent over the last year for the Midwest region, and is now approaching $100,000 per key.
“As the real estate industry accelerates its adoption of technology solutions, this transaction demonstrates Ten-X Commercial’s unique ability to help buyers, brokers and sellers achieve their distinct goals,” said Falor. “The Hotel Group, United Capital Corp., and CBRE have all had repeated success transacting on Ten-X, and the DoubleTree South Bend presented another ideal opportunity for each company. We’re proud of the continued success we’ve had at working with buyers, seller and brokers, and enabling them to close deals with greater certainty.”
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Ten-X is the nation’s leading online real estate transaction marketplace and the parent to Ten-X Homes, Ten-X Commercial and Auction.com. To date, the company has sold 292,000+ residential and commercial properties totaling almost $48 billion. Leveraging desktop and mobile technology, Ten-X allows people to safely and easily complete real estate transactions online. Ten-X is headquartered in Irvine and Silicon Valley, Calif., and has offices in key markets nationwide. Investors in the company include CapitalG (formerly Google Capital) and Stone Point Capital. For more information, visit Ten-X.com.
About The Hotel Group
The Hotel Group is a nationally recognized Top 40 hotel company and currently manages and/or owns close to 40 properties in 11 states, representing 12 brands and employs more than 2,000 people. Since its inception in 1984, THG has managed and/or owned 120 properties in 25 states, directed the design and construction of more than 40 new hotels, and completed the acquisition of more than $190 million in private investment through the Hotel Group Opportunity Funds. For more information on THG and the services it offers, visit www.thehotelgroup.com.