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The RADCO Companies, a nationwide opportunistic real estate developer, has acquired The American Hotel from Legacy Ventures, the firm announced in a press release.
The historically significant 315-room, full-service hotel in Downtown, will continue to be managed by Legacy Ventures. Additional terms of the deal were not disclosed.
Opened in 1962 as the American Motor Hotel, the property has a rich history as the first racially integrated hotel in downtown Atlanta and was cited as an important catalyst in the relocation of Major League Baseball’s Braves franchise from Milwaukee to Atlanta in 1966. The American Hotel became a fixture of the civil rights movement and hosted meetings of influential leaders such as Martin Luther King Jr., who is now depicted in a mural on the western wall of the property.
The deal marks the third acquisition by RADCO’s new hotel division launched in early 2021 in response to the COVID-19 pandemic’s operational and capital markets disruptions in the hospitality sector. RADCO is actively seeking out hospitality assets that are in line with the company’s overall opportunistic investment strategy, according to CEO Norman Radow.
“It’s no secret that the hospitality sector suffered considerably in the wake of the global pandemic, especially hotels in central business and entertainment districts that thrive on corporate leisure and convention center demand such as Downtown Atlanta,” Radow said. “The American Hotel provided a unique opportunity to acquire a recently renovated asset with tremendous value-add and mark-to-market potential.”
Legacy Ventures acquired the hotel in 2015 and completed a comprehensive $16 million renovation program in 2017, including rebranding the property as The American Hotel, to restore and revitalize the asset, embracing a retro 1960s theme. RADCO plans to build on these upgrades and up brand the asset to Hilton’s new Tapestry Collection brand. The hotel is currently a DoubleTree by Hilton.
“It has been a career highlight restoring the historically significant American Hotel. Now under RADCO’s ownership, Legacy Ventures will continue as the property’s hotel and restaurant managers,” said Legacy Ventures’ Founder & President David Marvin. “Legacy Ventures is geographically diversifying, but we will continue to be headquartered and engaged in downtown Atlanta where we own and manage multiple other hospitality assets.”
The RADCO Companies has a 28-year history of acquiring and investing in opportunistic real estate across all asset classes. The firm recently re-entered the hospitality market with the acquisition the 174-room DoubleTree by Hilton Atlanta Roswell hotel in Roswell, GA and the 80-room DoubleTree by Hilton Atlanta Alpharetta hotel in Alpharetta, GA. The firm’s investment strategy targets underperforming assets that offer immediate mark-to-market opportunities, as well as assets requiring capital infusion to add value. RADCO seeks out well-located assets that have limited access to institutional debt or equity capital for a variety of reasons.
“RADCO projects that the hospitality market will experience a significant recovery in the short term and that the Downtown core of Atlanta will continue to be a robust attraction for many years to come,” Radow said. “Current plans for investment, especially Centennial Yards, a planned $5 billion development adjacent to Centennial Park, will stimulate continued growth and additional visitors to the area.”