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(ATLANTA, GA) - Hunter Realty Associates Inc., a 30-year-old family-founded and operated Atlanta-based hotel brokerage firm, has closed three national deals valued at more than $28 million in a single week.

The investment market for under-$15 million-sized deals is growing quickly, says company president Teague Hunter.

Teague Hunter

"There are several factors favoring buyers in the current environment," he says.

"First, capitalization rates are moving upward. Second, with significant new cash being poured into the economy by the government, inflation is likely to affect values in the future. And third, with the likelihood of higher tax rates ahead, the tax advantages of owning real estate will again become meaningful."


The three traded properties were a five-story, five-year-old Courtyard by Marriott in Bristol, VA, purchased by Apple Nine SPE Bristol Inc.; a two-story Best Western in Atlanta bought by Kennesaw Hospitality LLC; and a Comfort Inn & Suites in Birmingham, AL acquired by DR & MV Hospitality LLC.

Courtyard by Marriott, Bristol, VA

Hunter Realty was both the listing and selling agent in all three transactions.

Multiple financing arrangements were used to consummate the three transactions, reflecting the current economic climate. The deals included an SBA loan; a conventional loan in which the owner had a strong relationship with the lender; and cash above an assumed CMBS loan.

Best Western, Atlanta Midtown

"Financing is certainly more difficult and requires greater equity than a year ago, but the economics of these transactions were compelling for both the buyers and sellers," says Teague Hunter.



"Strong banking relationships, a proven track record and creative approaches will certainly pay off in this environment."

Lee Hunter

Lee Hunter, chief operating officer of Hunter Realty, notes,"It is well known that the hotel industry is facing both tough economic times and difficult financial markets. However, despite the flood of negative economic news, transactions are and will continue to close, especially in the under $15 million-sized deals."



Adds CEO Bob Hunter: "Despite a decelerating economy throughout the year, Hunter (Realty) expects to finish strong, in both number of properties and dollar volume."

Comfort Inn & Suites in Birmingham, AL

He says he anticipates "many more properties will come to market in 2009. Our recent move to new larger offices underscores our confidence in the hotel real estate market, and we look forward to a very active year in 2009."

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