The 98-room La Quinta Inn hotel in the town of Brookfield has been acquired by an investors group affiliated with a developer of The Corners of Brookfield.
The hotel, located southeast of West Bluemound and North Barker roads, was acquired by Newfield Holdings LLC for $6.25 million. The building is directly west of The Corners of Brookfield, a 750,000-square-foot mixed-use project consisting of retail, restaurants, entertainment and apartments.
Newfield Holdings is an affiliate of United Kingdom-based IM Properties, which has a U.S. office in Chicago. IM Properties partnered with Bradford Real Estate Cos. to take over The Corners development in 2015 under a joint venture called Brookfield Corners LLC.
A spokesperson for The Corners declined to comment on the deal.
"We have no details to share at this time, and we don’t comment on speculation," the spokesperson said in an emailed statement.
A representative of IM Properties did not immediately provide a comment.
The Corners of Brookfield is IM Properties' largest U.S. investment, according to the company's website.
While the hotel's future is unclear, it could add 2.5 acres to the 19-acre, town square-style Corners of Brookfield development next door.
The hotel ceased operations recently, and calls to its listed phone number are being rerouted to a different nearby hotel. Wyndham no longer lists the La Quinta location on its website.
The property is assessed at $4.27 million, according to Waukesha County records.
IM Properties bought it at about two-thirds of replacement cost, meaning the dollar amount it would take to build a similar-sized La Quinta Inn. That's according to Greg Hanis, hotel industry analyst and president of New Berlin-based Hospitality Marketers International Inc.
Hanis said the hotel's new owners could do a number of things with it, making clear he does not know their specific intentions.
The building could undergo renovations and reopened under another hotel flag, though that would likely be a pricey undertaking.
"A 30-year-old La Quinta is probably at the end of its useful life as a major franchise flag," Hanis said. "It’s reaching that point, unless they’ve (previously) done some significant renovations."
The building could also be torn down or repurposed for other uses, such as retail or housing, he said.
The La Quinta sale follows the acquisition of another hospitality property near The Corners a year earlier by a separate developer. An affiliate of Hales Corners-based Wimmer Communities bought the former Motel 6 property located northeast corner of Barker and Bluemound for $3.4 million.
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