Taking advantage of the hard times for hotels, a group of East Coast real estate investors has scooped up the troubled Northland Inn in Brooklyn Park, promising a substantial renovation.
The buyers -- Hotel Asset Value Enhancement Inc., a hotel investment advisory company in Providence, R. I., and Fidelity Real Estate Group, a unit of Boston-based Fidelity Investments -- announced the sale Friday but wouldn't disclose the purchase price.
There was a balance of $20.5 million on the loan on the property, according to commercial real estate researcher Trepp LLC in New York. The loan had gone back to the lender and was being handled by Helios AMC, a special servicer and distressed asset manager in San Francisco. Helios AMC confirmed Friday that it sold the Northland Inn.
The 231-room meeting hotel, originally developed by James Stuebner, president Parkland Hotel Investors LP, went into foreclosure last year. It employs about 135 people and sits at the intersection of Interstate 94 and Hwy. 169.
Hotel Asset Value Enhancement's sister company, StepStone Hospitality, has taken over management of the property.
"The foreclosure created a lot of uncertainty and it impacted the customer base at the time," said StepStone President Blair Wills. "We're looking forward to meeting those past customers and trying to bring them back to the property."
Wills said the company plans to make a substantial investment in the property but wouldn't elaborate, saying the property is still being evaluated.
Wills said they haven't decided whether to re-brand the hotel or continue to operate it as an independent.