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Texas traders strike $44M deal for La Quinta LAX

Portfolio purchase by NewcrestImage also includes $17M Anaheim hotel

Highgate's Arash Azarbarzin, Cerberus' Steve Feinberg and NewcrestImage's Mehul Patel with 5249 West Century Boulevard (Highgate, Cerberus Capital Management, NewcrestImage, Google Maps)
Highgate's Arash Azarbarzin, Cerberus' Steve Feinberg and NewcrestImage's Mehul Patel with 5249 West Century Boulevard (Highgate, Cerberus Capital Management, NewcrestImage, Google Maps)

The La Quinta Inn & Suites near LAX has traded hands from one Texas-based investor to another, The Real Deal has learned.

Grapevine-based hotel investment firm NewcrestImage bought the 281-key hotel at 5249 West Century Boulevard for $44.2 million, according to public records filed with L.A. County. The company did not respond to a request for comment.

The firm purchased both the property and the ground lease, according to public loan documents. NewcrestImage scored a $38.6 million loan with a construction component from Fort Worth-based InterBank, which could be used for redevelopment.

The price works out to about $157,000 per room.

Highgate and Cerberus Capital Management sold the property, records show. The firms assumed ownership of the asset when they acquired CorePoint Lodging for $1.5 billion earlier this year.

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The LAX hotel was one of four La Quinta-branded hotels that NewcrestImage bought from Highgate and Cerberus — the company also bought one in Anaheim for $16.6 million, as well as properties in Dallas and Phoenix.

Within a week of purchasing the Anaheim hotel at 1754 South Clementine Street, the company flipped it for $18.3 million, records show, selling it to Phoenix-based MK hotels.

NewcrestImage is no stranger to hotels. The firm owns a minority stake in hotel operator Aimbridge Hospitality and is a shareholder in Summit Hotel Properties. And NewcrestImage has expanded rapidly over the last year, scooping up properties across the country.

This month, the firm agreed to buy 16 Marriott-branded hotels across nine states, as well as 45 other hotels totaling 3,300 rooms across 11 states, according to separate announcements this month.

The La Quinta is at least the third hotel near LAX to trade over the last year.

In November, Dallas-based private equity firm Lone Star Funds bought the 747-key Westin LAX from Host Hotels & Resorts for $71 million. And earlier this month, Park Hotels & Resorts struck a deal to sell the Hilton Garden Inn near LAX to an entity linked to San Francisco-based DiNapoli Capital Partners.

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