Siegel Group Adds Flexible Stay Property
July 6, 2007
By Brian K. Miller
LAS VEGAS – The Siegel Group Inc. recently acquired a 126-unit “flexible stay” property and adjacent land located 80 miles northwest of here, near the confluence of Nevada, Arizona and Utah. The Los Angeles-based company paid $6.85 million for the Mesquite Springs Suites, which sits on 3.74 acres of land near Exit 122 from Interstate 15, and 2.5 acres of contiguous land.
Siegel intends to construct additional units on the excess land and possibly retail space. First Republic Bank in Nevada provided acquisition financing. Siegel Group president Stephen Siegel says it was attracted to the property due to the shortage of rooms in Mesquite and the increasing number of people moving to the area to escape the rising cost of living in Las Vegas.
Located at 580 Mesa Blvd., the property will be renamed Siegel Suites Mesquite. Sasco Properties will manage the operating property. Michael Shaffner and Kevin Keefe of Marcus & Millichap brokered the transaction.
The Siegel Suites Flexible Stay brand comprises 2,000 rooms in the Las Vegas and Reno markets. A source at Siegel tells GlobeSt.com the company is planning additional acquisitions in the Las Vegas market. As part of the plan, the company recently disposed of a 66,775-sf shopping center in the Phoenix area for $8.95 million, the proceeds from which will be used to acquire an additional property in Las Vegas.
“At the moment we are focusing our efforts on the Nevada market, which we believe holds more value and opportunity compared to any area of the country for us,” Siegel says.