Editor’s note: This story has been updated with new financial information and to show that Peachtree Hotel Group acquired two parking lots, not one.
An out-of-state hotel investment firm has acquired a downtown hotel and two nearby parking lots for a total of $33.3 million.
Atlanta-based Peachtree Hotel Group bought the Hampton Inn by Hilton, 105 S. Meridian St., and the parking lot immediately south of the building for $29.8 million. The property was previously owned by 105 S. Meridian Inc., a subsidiary of Martinsville-based TWS Management.
The principal of TWS, Ronald Tedrow, had a stake in the building since 1994, when his firm, Peak Management and Acquisition Inc., partnered with Foxcliff South Associates to buy the property at auction for about $700,000.
In addition to the hotel, a 50-car parking lot at 102 S. Pennsylvania St., which has long been used for valet service by the Hampton, was separately acquired by Peachtree for about $3.5 million. The land was sold by Meridian Historical Properties LLC, which is also owned by Tedrow.
The Hampton, which opened in 1996, was developed by local hotelier Gary Schahet for about $6 million. Its debut marked downtown’s first new hotel since the Westin opened in 1989, according to IBJ archives.
The hotel is housed in the nine-story Chesapeake Building, a restored structure constructed in 1929 to serve as a headquarters for the Big Four Railroad. It was originally designed by D. A. Bohlen & Son and redesigned as a hotel by Browning, Day, Mullins & Dierdorf.
Pomodoro, a limited-service Italian restaurant, opened on the first floor of the hotel in November—the latest in a line of several restaurants in the spot. It was preceded by Nook: A Paleo-Influenced Diner, Mo’s A Place for Steaks, and Lorenzo’s, among others.
The hotel itself has gone through multiple remodels in the past two decades, most recently in early 2019. A new blade sign was installed on the building at the corner of Maryland and Meridian Streets last October. It’s unclear what updates the new owner plans to make to the property.
Neither a Hampton Inn manager nor a representative for Peachtree returned calls requesting comment Thursday.
Brian Silberman, senior vice president for the Chicago hotels division of Los Angeles-based brokerage CBRE, which handled the sale, described the acquisition as “an excellent investment opportunity for Peachtree Hotel Group right in the heart of Indianapolis” in a release about the transaction.
Peachtree does not own any other hotels in downtown Indianapolis, but it is developing two projects in Plainfield. The firm manages or owns nearly 120 hotels around the United States, accounting for brands under the Marriott, Hilton, Hyatt, Choice and InterContinental Hotels Group flags.
It’s not clear whether the Pennsylvania Street lot will continue to be used for parking or redeveloped. It is one of just a few busy undeveloped corners in the city’s Central Business District.
At least 19 hotels totaling about 4,000 rooms are planned or under construction in downtown Indianapolis.
The sale of the properties closed in mid-December.
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I hope that parking lot is redeveloped. There’s no shortage of parking garages in the area that the hotel could use for its services.