Last updated on March 17th, 2020 at 01:36 pm
The Aloft Hotel in downtown Milwaukee has been acquired by Maryland Heights, Missouri-based Midas Hospitality LLC for nearly $26.5 million, according to state records.
Through an affiliate, the hotel development, management and investment firm purchased the 160-room hotel at 1220-1240 N. Old World Third St., near the Fiserv Forum, from Milwaukee River Hotel LLC.
Aloft Milwaukee Downtown opened in late 2009, and was developed by Milwaukee-based Jackson Street Holdings. The 92,400-square-foot hotel includes 4,600 square feet of meeting space.
It has an assessed value of nearly $20.1 million, according to city records.
In a news release, Midas noted the Aloft hotel was the third hotel acquired through the Midas Hotel Fund.
“Our investors are very pleased with the first investments and our strategic pursuit of new acquisitions and development projects,” J.T. Norville, Midas co-founder and managing partner, said in the release. “The Milwaukee hotel aligns perfectly with our portfolio based upon brand, location and the opportunity to leverage our strengths and improve the hotel’s overall performance.”
Midas listed Aloft as a planned acquisition in a recent presentation to investors. The presentation also referred to Milwaukee as the fund’s “next growth market.”
“Midas acquired this Aloft property below replacement cost and our management team has identified multiple areas for cost savings and efficiency,” the presentation states.
Norville said the Midas Hotel Fund “is designed to create a distinct and diversified hotel portfolio to investors.” He added the group is still pursuing multiple opportunities, though he didn’t specify further.
Midas explained in the presentation its interest in Milwaukee is at least in part due to the Deer District, an eight-block development area surrounding the Fiserv Forum. Taiwanese electronics manufacturer Foxconn Technology Group has its North American headquarters a mile from the arena district, the presentation notes. Foxconn’s area corporate offices are located at 617 E. Wisconsin Ave., and is constructing a sprawling manufacturing campus in Mount Pleasant.
“The newly flourishing area is revitalized with entertainment and is surrounded by both commercial and residential development,” the presentation states. “This location is where people live, work and play.”
According to the release, Midas operates one other Wisconsin hotel: Another Aloft hotel located in Green Bay.
Midas was founded in 2006, and specializes in the development, management and investment of hotel properties across the U.S. It focuses on select-service and extended-stay hotels for global brands such as Hilton, Marriott and InterContinental Hotels Group.