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Colliers facilitates the sale of Quality Inn Palm Beach International Airport and IHOP restaurant in West Palm Beach for $12.5M

The Colliers South Florida Investment Services Team represented the buyer in purchasing the property assemblage.

WEST PALM BEACH, FL | Aug. 8, 2022 – Colliers facilitated the sale of the Quality Inn Palm Beach International Airport & IHOP restaurant located at 1503-1505 Belvedere Road in West Palm Beach, FL. Executive Managing Director Mark M. Rubin and Director Bastian Laggerbauer of the Colliers South Florida Investment Services Team represented the buyer, Index Investment Group and Colliers Executive Managing Director & Director of Colliers Hotels USA, Richard Lillis represented the seller, Cherry Cove Hospitality, in this off-market transaction. 

“Our team is thrilled to have assisted our client in expanding their West Palm Beach portfolio,” said Rubin. “After assisting in their acquisition of the Cemex Building in November last year, this was an accretive opportunity to acquire the adjacent property.”

The 135-room hotel is situated on a 139,828 square-foot lot strategically located next to the Palm Beach International Airport and within short distance to downtown West Palm Beach.  The purchase also includes a 5,408 square-foot IHOP restaurant on the south end of the parcel, which has prominent Belvedere Road frontage. Index will assume operations of the property immediately and continue to operate under the Quality Inn brand.

Lillis represented the seller in the sale of the portfolio to Cherry Cove Hospitality for $7.4 million in 2016 so his relationship and property knowledge was invaluable.

“This transaction was an excellent chance for our teams to collaborate and reach a mutually beneficial deal for both sides. We’ve accomplished expanding our client’s presence in this particular West Palm Beach submarket, where Index Investment Group is significantly involved as owners and developers,” said Laggerbauer. “Palm Beach County remains a stronghold for hotel activity despite COVID’s impact on the industry.”

Index Investment Group is a dynamic real estate investment firm based in Jupiter, FL, which has significant investment initiatives throughout North America, including apartment communities, industrial/logistics, office, hospitality, and senior living communities. The company develops intelligently designed properties throughout the east coast of the United States with a focus on Florida and contributes to the community through valuable and meaningful investments. 

Index also purchased a 65,760 SF Class A office property previously known as the CEMEX building in a joint venture with Verdex Construction in November 2021 for $13.4 million. The building has been rebranded as District Pointe and will now be Verdex Construction’s new U.S. headquarters.

“The purchase of the Quality Inn hotel property next to our ‘District Pointe’ office property will help us utilize both properties better and add structured parking and other amenities, such as a restaurant, coffee shop and padel courts on top of the garage, for the office tenants and also create a new residential community on the current office surface parking,” said Bjarne Borg, CEO of Index Investment Group.

Since the pandemic, Palm Beach County has become an attractive market for both in and out-of-state investors. In Palm Beach County, occupancy has reached 62.4 percent and is forecasted to return more robust than before, reaching pre-pandemic levels of 70 percent by this time next year. Investment in commercial assets reached $8.8 billion in 2021, doubling the 2019 amount of $4.1 billion. Furthermore, in 2021 cross-border commercial acquisitions in Palm Beach County reached a new high of $604 million, with significant investment coming from Canada, Europe and Mexico.


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Mark M. Rubin

Executive Managing Director

Boca Raton

I am an Executive Managing Director at Colliers International and senior member of the South Florida Investment Services Team primarily focused on the sales and leasing of commercial properties in South Florida.  For over 30 years I have successfully worked with clients to meet their commercial real estate needs. Whether buying, selling, leasing or financing real estate assets, I am consultative and client-centric, creatively structuring transactions and strategies to meet my client’s investment objectives. With involvement in over $3 billion of transactions across all asset classes, I have worked with investors of all types including institutional investors, high net worth private clients, developers and financial institutions in South Florida.

Prior to joining Colliers, I  served as a Principal of Avison Young and member of its Florida Capital Markets team. Prior to that, I  held senior leadership positions with Newmark Knight Frank, Amerivest Group, Savills Studley and JLL.

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Bastian Laggerbauer

Director

West Palm Beach

As a Director, my focus is primarily on investment sales and providing the highest level of service to my clients throughout the South Florida region. I am proficient in valuating assets of all property types and implementing financial analysis through Argus Enterprise and Excel. During my tenure at Colliers international, I have been involved in deals exceeding a combined value of $350 Million. I have also engaged in select landlord representation, which has only enhanced my experience and ability to fully valuate and transact both income-producing and distressed assets.

My professional accomplishments include researching and analyzing historic and current data for the retail, office and industrial sectors in each submarket and creating individual, detailed reports for all three sectors in the tri-county area of South Florida.  I also earned my Argus Enterprise certification to further enhance my skills, while earning my Bachelor’s Degree in International Business from Northwood University in 2015 and my Master of Science in International Real Estate from Florida International University in 2016. 

I was born in Munich, Germany, where I have family ties to Colliers International. My family founded the Munich office and I subsequently completed an internship before moving to the USA. My time in the Munich office only made me eager to further my experience in the industry and drove my decision to move to Florida to pursue my degrees, while working in the Palm Beach Gardens office. 

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Rich Lillis

Executive Managing Director, Hotels USA

Boca Raton

Rich Lillis is a leading expert providing strategic advisory services to clients on hotel and resort investment sales and financing in Florida, Eastern United States and the Caribbean. In his role as Director of Colliers Hotels USA, Rich leads a nationwide team of lodging specialists, leveraging unique industry insights and sharing best practices to deliver great results for clients. In the dynamic hotel investment market, Rich and his team provide valuable solutions to hotel owners and investors, developers, land owners, regional lenders and special servicers. 

As a frequent speaker at national hotel investment conferences ALIS, NYU and NABHOOD, Rich offers a unique perspective from his deep experience and diverse lodging background.   

Prior experience includes Miami practice leader at Horwath HTL, asset management at Ocwen Financial Corporation and hotel management positions at New Castle, Doral, Marriott International and Plaza Hotel. Rich earned his Bachelor of Science in Economics from State University in New York and is a Florida licensed real estate broker. Rich and his wife Maureen reside in Boca Raton, Florida.

Colliers is global leader in lodging investment services with 150 dedicated hotel professionals in the USA, Canada, EMEA and APAC providing transaction, financing, consulting and valuation services. 

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