Legendary Capital announced it sponsored the acquisition of the 113-room Residence Inn Fort Collins in a $17.7 million transaction. The deal utilized Legendary Capital’s proprietary Equity Preservation UPREIT (EPU) mechanism in which Residence Inn ownership contributed the property in exchange for a special class of Transition Partnership Units (T-Units), allowing for the potential preservation of the contributor’s equity as the property restabilizes. The consideration included a payoff of the $11.5 million loan secured by the Residence Inn, $5.6 million in T-Units to the Contributor plus closing costs.
This is the seventh transaction Legendary Capital has sponsored using its patent-pending EPU §721 UPREIT contribution structure since February 2021, following the Courtyard by Marriott in Aurora, CO, the Holiday Inn El Paso Sunland Park in El Paso, TX, the Hilton Garden Inn Houston in Houston, TX, the Sheraton Northbrook in Northbrook, IL, the Hampton Inn Fargo in Fargo, ND, and the Fairfield Inn & Suites Denver in Lakewood, CO.
The Fort Collins-Loveland metropolitan statistical area (MSA) has an estimated population of 310,500 including 166,000 in Fort Collins proper. The city is home to Colorado State University, which has an enrollment of around 35,000.
“The Fort Collins market hits that sweet spot as a mid-size metro,” said CEO Corey Maple. “It has all of the draws of a big city while avoiding some of the volatility we see in major urban centers.”
Fort Collins is home to numerous large corporations, thanks in part to convenient access to young talent. Hewlett Packard, Advanced Energy, Anhueser-Busch all call the city home, and a number of large healthcare systems serve the market.
“The Fort Collins market is youthful, vibrant and full of energy,” said Linzey Erickson, President, Legendary Capital. “We are proud to put down roots in a growing metro that has so many demand generators.”