An independent, 42-year-old downtown Rochester hotel sold for a whopping $18.2 million as the city's first big real estate deal of 2020.
The Brentwood Inn & Suites, formerly known as Brentwood Motor Inn, at 123 Fourth Ave. NW was purchased by an investor group called Agave Brentwood Hotel, LLCon Wednesday. It's located near Mayo Clinic's Methodist Hospitalcampus.
The sellers were a long list of Rochester-based companies, including Brentwood Real Estate, LLC, Stack Downtown Investments, LLC, MJ Hotels, LLC, Rolling Shores, LLCand the Arnold J. and Rebecca A. Bombaars Revocable Trust.
A local family that has long been involved with the hotel was among the sellers, but they are also part of the buyers group.
Agave Brentwood Hotel, LLC, includes local ownership by the Pompeian family, now led by Nick Pompeian. The Pompeian family has had ownership in the classic hotel since Ed Pompeian first invested in it in 1983.
Ed Pompeian helped spearhead the $1.35 million additionof three stories and 63 rooms in 1999.
Nick Pompeian says no changes are planned for the hotel under the new ownership.
The big question is why a 1978 hotel, which Olmsted Countyestimates to have a total market value of $4.68 million, sold for more than four times that amount.
Pompeian said simply that $18.2 million was the number settled on during the negotiations.
This deal does introduce a new investor to Rochester's core.
The Agave in Agave Brentwood Hotel refers to Agave Holdings, a developer with offices in Miami and Mexico City. It has been linked to billionaire Juan Beckmann Vidal, the chairman and majority owner of the tequila brand José Cuervo.