The Sheraton Hotel in Arlington, located near the convention center and Globe Life Park, home of the Texas Rangers, has been sold to the Plano-based Urbana Varro commercial real estate investment firm.
The deal for the 19-story, 311-room hotel closed Oct. 21. Urbana Varro Hospitality Management Co., an affiliate, took over hotel operations, the company said.
The 14.5-acre property at 1500 Convention Center Drive was sold by Investcorp in New York, which obtained the property from Highgate Hotels in Irving in 2011. The property is on a long-term land lease with Arlington.
Highgate had owned the property since 2005. In 2008, Highgate spent $15 million renovating the hotel and its rooms in anticipation of the opening of nearby Cowboys Stadium, now AT&T Stadium. Highgate once considered a 300-room expansion and had asked for city incentives.
The hotel once had the Marriott brand.
Located in the center of Arlington’s entertainment district, the Sheraton is Urbana Varro’s first property in Dallas-Fort Worth.
Allan Gutierrez, CEO of Urbana Varro, said the hotel will remain a Sheraton. His firm plans a multimillion-dollar renovation, he said.
“Sheraton Arlington Hotel complements our hotel portfolio of premium branded assets acquired below replacement costs that offer excellent opportunities to enhance value through renovation,” Gutierrez said.
“The Sheraton Arlington Hotel will provide us with exposure in the thriving Dallas market and will be a great addition to our growing portfolio,” Jeremy Soder, Urbana Varro’s chief marketing officer, said in a statement. “While several other buyers were evaluated throughout the selection process, we prevailed, primarily because we were successful in demonstrating our financial ability to close large transactions.”
Urbana Varro bought the hotel under the entity UVH Arlington and financed the deal through a $33.6 million note with RCC Real Estate in New York, deed records show.
Since its founding in 2002, Urbana Varro said, it has bought and sold $300 million worth of commercial property. Besides hotels in Georgia, California, South Carolina, Florida, Alabama and Texas, the investment company owns shopping centers and office buildings.
In Texas, it owns TownePlace Suites by Marriott in Austin, Houston and College Station, according to its website.