Overview
The Radisson St. Paul Downtown represents a unique opportunity to acquire a highly diversified asset that boasts upside potential. The Property exhibits numerous income streams from rentable meeting space, highly stable office tenants, food & beverage outlet, and a cell tower lease (which are highly sought after in the investment community).
The Property benefits from St. Paul’s robust economy with highly stable government, corporate, and leisure demand generators. The Radisson is walking distance from major demand generators including Xcel Energy Center, United Hospital, Travelers Insurance Corporate offices, and the State Capitol Building.
Following acquisition in 2015, current owners committed to a ground up renovation including upgrade and replacement of all critical HVAC systems, domestic water hot water, elevator modernization, fire safety system, and tenant improvements. Beyond these "behind the walls" updates and initial renovation in 2017, over $500,000 has been invested in guest room and guest facing improvements over the last three years.
Terms of Sale
- Tenure: Fee simple
- Price: Please contact HREC for pricing guidance
- Management: Free and clear of management
Please DO NOT contact the staff, management, or ownership of the Hotel to request additional information or to arrange a site tour.
Investment Highlights
No New Supply in the City
Currently, there are zero Hotels under construction in St. Paul.
Exceptional Room for Performance Growth within Market
The Radisson St. Paul is 6 of 6 within its competitive set in RevPAR. The Property is currently achieving a RevPAR of $48.27 while its competitive set is averaging a RevPAR of $75.51, indicating the significant amount of room the Radisson has to boost top-line performance from where it is now.
Diversified Asset with Multiple Revenue Streams + Highly Stable Tenants
The Radisson has a diverse set of supplemental revenue streams from its on-site restaurant ($554K in 2024), +/-4,984 SF of rentable event space, +/-20,533 SF of leasing space ($468K in 2024), a cell antenna lease ($427K in 2024), and available paid parking ($190K in 2024). The majority Property’s office tenants are stable government-related employers.
Cell Tower Lease Renewal Opportunity
New ownership will also have the opportunity to extend the Property’s current cell tower lease. Cell tower leases have become increasingly sought after in the investment community due to their low-risk profile.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. The national average cost of building a hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
Surrounded by +8.36M Class A Office Space
There is approximately 8,364,385 square feet of rentable office space within a three-mile radius of the Property.
Offered Unencumbered by Management
The Radisson St. Paul Downtown is being offered unencumbered by a management agreement. An investor possesses the opportunity to bring in a new management company or to act as an owner/operator and seek to revamp the operational strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
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