July 10, 2019
Consolidated-Tomoka Land Co. paid $16.3 million to acquire 1.4 acres under Austin’s Carpenter Hotel. The Florida investor then entered into a new 99-year deal to lease the land back to the local seller. The transaction was structured as part of a 1031 Exchange; Consolidated-Tomoka used proceeds from the completed sale of a Santa Clarita, CA office to fund the Central Texas land buy.
The buyer also originated an $8.3 million loan, secured by the leasehold interest in the Carpenter Hotel. The partial-recourses one-year loan has an 11.5% interest rate.
The 93-key Carpenter Hotel, at 400 Josephine St., opened in 2018. The boutique hotel is on the site of the former carpenter’s union hall, and has a swimming pool, café and full-service restaurant.
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