The 46-year-old Hotel Broadway at 1625 S. Broadway has been purchased by Med Town Hospitality LLC of Woodbury for $5.1 million.
Med Town bought the 145-room hotel from Access Point Financial, the Atlanta bank that took over the hotel after the former owners — Wayzata-Rochester 16 Hospitality Associates — filed bankruptcy in 2016.
Rochester commercial Realtor Merl Groteboer of Re/Max Results represented the buyer and seller in the deal. Groteboer said the new owners intend to renovate the hotel, inside and out.
Olmsted County estimated the total market value of the property at $6.27 million for 2018-2019, which was up from $5.9 million in 2017-2018.
The hotel, which previously operated under the Wyndham Garden brand, has struggled in recent years.
Cowboy Jack’s, a popular Western-themed eatery that operated inside the hotel for five years, closed earlier this year. One reason for that closure was ongoing problems with the restaurant’s utilities, which were tied to the hotel. Often water and trash services were not available, due to the hotel not keeping up with bills. That means to keep the services going, the restaurant was often paying water and garbage hauling bills for the entire complex.
The previous Wayzata-based owners filed bankruptcy in 2016, so the hotel has not had active management since then. Wayzata-Rochester 16 owed $6.6 million to Access Point at the time of the bankruptcy filing. Lee Fundanet, then an owner and chief operating officer at Bay Ridge Properties International, said in 2016 that the bankruptcy gave the owner a chance to refinance or sell. It failed to sell at auction.
Bay Ridge is a sister firm, though it is a separate entity from Wayzata-Rochester. Both were led by Robert "Tripp" Snyder in 2016.
Wayzata-Rochester 16 purchased the hotel for $4.8 million in 2012. It then renovated the property and changed the franchise from America's Best Value to Wyndham Garden.