REIT agrees to purchase Denver hotel
Chesapeake Lodging Trust of Annapolis, a hotel real estate investment trust, said it has entered into a definitive agreement to acquire the 613-room Denver Marriott City Center for $119 million, or approximately $194,000 per key. CLT said it intends to fund the acquisition with available cash on hand and by borrowing under its revolving credit facility. The acquisition is expected to close during the third week of September, subject to customary closing conditions. The existing management agreement with Marriott International Inc. will be maintained. The hotel is located on the first 20 floors of a 1 million-square-foot, 43-story building that also contains office space.
Chesapeake Bay Roasting acquires Va. coffee company
Chesapeake Bay Roasting Co. of Crofton, a specialty coffee roaster, announced its acquisition of Callao Coffee Co. of Luray, Va. Callao, a supplier of quality gourmet coffee, serves more than 150 premier coffee shops, restaurants and food service providers across northern and central Virginia as well as clients across the country.
Terms of the acquisition were not disclosed. Chesapeake Bay Roasting Co. serves more than 300 food service clients and its product can be found in more than 60 grocery and specialty markets, including select Whole Foods, Wegmans, MOMs Organic Markets, Roots and other independent retailers.
Bethesda’s Pebblebrook Hotel Trust buys into $910M joint venture
Pebblebrook Hotel Trust of Bethesda, a lodging real estate investment trust, said it completed its previously announced acquisition of a 49 percent interest in a joint venture that owns six upper upscale hotels in Manhattan, valued at $910 million.
The agreement calls for Pebblebrook to pay $153.6 million for its minority interest. The other partner, Denihan Hospitality Group, will continue to manage the properties.
The hotels — Affinia Manhattan, Affinia Shelburne, Affinia Dumont, Affinia 50, Affinia Gardens and The Benjamin – currently comprise 1,640 guest rooms, which will be increased to 1,730 rooms this fall following completion of the Affinia Manhattan renovation.
Rockville’s Capital Bank buys Pa. thrift
Capital Bank, National Association of Rockville acquired the sole branch of Public Savings Bank in Huntingdon Valley, Pa. on Aug. 18 after it was closed by the Federal Deposit Insurance Corp.
The FDIC said Capital Bank had assumed all of Public Savings Bank’s deposits under the agreement and would purchase almost all of the assets. At the end of June, Public had $46.8 million in total assets and $45.8 million in total deposits.
Public Savings Bank was the 65th bank failure nationwide in 2011 and the first in Pennsylvania. The FDIC said the cost to the Deposit Insurance Fund would be $11 million. The agency said the sale to Capital Bank was the least costly alternative.
Public Savings Bank had seen its total capital equity shrink since 2010. In the quarter ending June 30, the bank posted a $739,000 loss, which brought its total equity capital from $1.42 million to $721,000. In March 2010, Public Savings Bank had $4.7 million of total bank equity, which is used to help stave off bad loans and other losses.
Capital Bank, founded in 1999, has two branches in Maryland and one in Washington. For the quarter ending June 30, Capital Bank recorded a $976,000 profit and had total capital equity of $22.3 million.