Boston University Sells the Hotel Commonwealth
BOSTON—Boston University announced that it has sold the Hotel Commonwealth to a partnership between investment firm Fundamental Advisors LP and Sage Hospitality, a privately held hotel management and ownership company. The four-star boutique hotel, which was developed by Boston University, is located at the campus gateway overlooking historic Kenmore Square and within walking distance of Fenway Park. READER COMMENTS
"The sale of the Hotel Commonwealth represents an important step forward in fulfilling our long-term vision of transforming Kenmore Square into a vibrant destination," said Gary Nicksa , senior vice president of operations at Boston University. "We look forward to collaborating with Fundamental Advisors and Sage Hospitality, who have a deep interest in the community and a proven track record of working together productively in the hospitality space."
In addition to the hotel, the partnership between Fundamental Advisors and Sage Hospitality is also acquiring adjoining retail space totaling nearly 30,000 square feet, the tenants of which include two restaurants, Eastern Standard Kitchen & Drinks and Island Creek Oyster Bar, and a craft cocktail bar, The Hawthorne.
In addition to the prominent retail space and existing hotel structure, the sale price of $79 million includes a significant acquisition of developable land. All parties to the transaction have agreed to work cooperatively with regard to the undeveloped land to continue the urban revitalization efforts in the area.
"Sage is very excited for the addition of the Hotel Commonwealth to our portfolio as part of an aggressive growth strategy for our company," said Walter Isenberg , president and chief executive officer of Sage Hospitality. "We look forward to continuing the success of the hotel, while applying our vast experience in driving revenue and results."
Jones Lang LaSalle Hotels represented Boston University on the sale of the Hotel Commonwealth and secured debt financing for the new owner.