FocusPoint Announces Direct Investment Private Placement on Acquisition of 25 Extended Stay America (“ESA”) Hotel Properties (2,424 Keys) in High Growth Markets Across Texas and the Mid-West
FocusPoint Private Capital Group (“FocusPoint”) announced its completion of a private placement for an affiliate of Three Wall Capital, LLC (“Three Wall”) with an investor group on the acquisition of twenty-five Extended Stay America (“ESA”) hotel properties. FocusPoint was an exclusive agent for raising capital for the transaction. Three Wall strategically acquired 25 ESA hotel assets diversified across 9 cities in 4 states (Texas, Ohio, Indiana, and Kentucky) with a concentration in high growth markets near dense retail corridors, regional hospitals, major universities, and growing residential communities. TWC entered into a 20-year management/franchise agreement with ESA, the leader in the midscale extended stay market with over 620 hotels and 69,000 rooms across the United States.
David Conrod, Chief Executive of FocusPoint and its parent LANDC Investment LLC, commented “This compelling investment opportunity was especially attractive for family offices given the strong cash on cash returns and beneficial tax structuring. We have high confidence in the operations and experience of the Three Wall team and look forward to working with them on additional transactions in the hospitality sector.”
Alan Kanders, founder of Three Wall Capital commented “This opportunistic investment with Extended Stay America allowed us to successfully work with FocusPoint to expand beyond our existing capital relationships and continue to establish strategic long-term partners to invest in hospitality real estate. We are excited to have new investors alongside the “best in-class” operator in the midscale extended stay segment.”
About FocusPoint Private Capital Group
FocusPoint Private Capital Group is an independent capital raising firm specializing in private capital markets. The firm focuses on raising capital for private equity, credit, real estate, real assets and opportunistic strategies for funds and direct transactions in both developed and emerging markets. FocusPoint advises on all aspects of the fundraising process, including competitive positioning and market assessment, marketing materials and related documentation, partnership terms and conditions as well as investor relations. FocusPoint’s distribution capability extends to endowments, foundations, corporate and public pension funds, ultra-high net worth families, sovereign wealth funds and other limited partners throughout the U.S., Europe, Middle East and Asia. FocusPoint operates as a FINRA regulated broker-dealer in the U.S. and is a member of SIPC and is wholly owned by LANDC Investment LLC.
About LANDC Investment LLC
LANDC Investment LLC is a financial services firm with complementary platforms. LANDC launched an asset management platform with the creation of Rise Line Business Credit, LLC (riselinebc.com), a specialty finance asset-based lending firm. Along with equity ownership in Rise Line, LANDC has secured equity and carried interest stakes in select funds and direct transactions. Closely held LANDC was formed in 2014.
About Three Wall Capital LLC
Three Wall Capital LLC has completed a $1.0B in transactions with their institutional and high net worth investors through acquisition, redevelopment and development opportunities. Three Wall’s current portfolio includes The Quin, New York, Aloft Atlanta Downtown, Canopy by Hilton, Jersey City, Coral Beach & Tennis Club, Holiday Inn Express, Brooklyn, Holiday Inn, Secaucus, Red Lion Inn & Suites, Brooklyn, The Mayflower Grace and 25 Extended Stay America hotels.