Heard on the Street: Southeast hotel sells for $6 million
Hotels remain hot commodities in the Med City amid a hospitality boom.
While several new hotels are being built, others are selling for premium prices.
A four-year-old hotel in southeast Rochester’s Shoppes on Maine area sold for $6 million on Nov. 29.
Four Apple Valley, Minn.-based firms — RAJ Hospitality LLC, KGP Real Estate Holdings LLC, Laxmi Hospitality LLC and One Laxmi LLC — purchased the 86-room Microtel Inn & Suites from two North Dakota-based companies, Galaway Property Group LLC and Western Edge Aviation LLC.
The registered agents for the purchasing companies are Ankit H. Bhakta, Hiren P. Bhakta and Priti Laxmi, according to Minnesota Secretary of State records.
The buyers paid a $1.5 million downpayment for the property.
Olmsted County estimated the market value of the 40,400-square-foot hotel at $3.6 million for 2017-2018.
Construction of the hotel in 2014 cost an estimated $7.5 million to $8 million, according to its developer Chuck Hayes.
Hayes, who also built the nearby La Quinta Inn and Suites, said in 2014 that he was bullish on the Rochester market.
“I like the economics of Rochester. I like what’s going on there,” he said to explain why he decided to build another hotel here.
He was also very optimistic about the Shoppes on Maine area.
“I like the uniqueness of the development. It’s well managed. Everything’s new and fresh. Its access to downtown and Mayo Clinic is convenient,” he stated in 2014.