The vacant Hotel Monroe in downtown Phoenix has finally been purchased by a hotel and real estate company based in Minneapolis. The company, CSM Corp., acquired the building for almost $8 million.
The Hotel Monroe has been vacant for a long time. What does the real estate company plan to do with the 13-story building? Reports say that they are going to redevelop the building into a hotel with approximately 150 rooms. The company already owns several hotels throughout the United States, including two in Phoenix.
The Hotel Monroe has been for sale for several years after the owner of the building filed for bankruptcy back in 2008. Grace Communities bought the building back in 2007 and intended on developing a hotel. However, than plan never worked out and the building eventually went into foreclosure. Another company was also interested in purchasing the building, but they were not able meet the closing dates.
The Hotel Monroe in downtown Phoenix has been on a rollercoaster ride during the last few years. Now that a real estate company has purchased the property, it will be interesting to see what they are able to do with the building, and if their plans to redevelop a hotel work out.
Purchasing commercial real estate can be tricky, and there are many considerations to make when trying to acquire property to redevelop. Real estate transactions like this one may have several stipulations due to the high purchase price as well as the fact that the company is planning to redevelop the building into a hotel.
Individuals and companies in Phoenix thinking about buying commercial or residential real estate should be aware of current market trends as well as what considerations to make before signing a purchase agreement. It may be beneficial to consult a real estate attorney when shopping in the real estate market to make sure the process goes as smooth as it can.
Source: Phoenix Business Journal, “Hotel Monroe sold in downtown Phoenix for nearly $8 million,” Kristena Hansen and Mike Sunnucks, Dec. 20, 2013