A Richmond-based real estate firm is slated to purchase the Waterside Marriott in Norfolk.
Lingerfelt Commonwealth Partners is expected to purchase the 24-story Marriott, built in 1991, for an estimated $35 million from the Rhode Island-based Procaccianti Group, which has owned the building since 2003. Lingerfelt CommonWealth now owns eight hotels in the Southeast. Inside Business publication in Norfolk reported that there are plans for renovations costing around $15 million to $20 million to upgrade the facility’s conference center, rooms, lobby, and rooftop pool. According to documents provided by the city, once the purchase is completed, the franchise agreement with the 405-room Waterside Marriott would extend for 20 years.
Documents also show a recommendation to the city of Norfolk to contribute a minimum of $4 million to the attached conference center. A performance-based grant, calculated on the increased revenues and value from the hotel, will be provided by the city. The grant is estimated to be $600,000 with a maximum grant of $3 million over a period of 10 years starting in 2019.
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Once the purchase is completed, the franchise agreement with Waterside Marriott would extend for 20 years.[/caption]
Jared Chalk, the special assistant to the city manager, said construction is expected to begin in 2018. He also reported the deal would provide a revenue stream to pay for the upgrades to the conference center.
“We own the conference center, and that’s where we’ve got to spend the money,” Chalk said. The city is also expected to sell the land underneath the Marriott, owned by the Redevelopment and Housing Authority, for $1.5 million. In June 2014, Lingerfelt CommonWealth purchased the former Richmond Marriott West with the goal of renovating and repositioning it. Lingerfelt CommonWealth’s portfolio in the Richmond region includes a building in the Virginia Biotechnology Research Park in downtown Richmond, more than one million square feet of office space in the Innsbrook Corporate Center, and suburban medical office buildings and shopping centers. Lingerfelt CommonWealth Partners expects to close on the purchase of the hotel this month.