Monarch Alternative Capital Acquires Westin Minneapolis at ‘Significant Discount’
The Westin Minneapolis is housed in the former Farmers & Mechanics Bank, which dates to 1941.

Monarch Alternative Capital Acquires Westin Minneapolis at ‘Significant Discount’

Hotel last sold for $66.4 million in 2015

New York-based Monarch Alternative Capital announced Wednesday that it had acquired the Westin Minneapolis, a 214-room hotel in the heart of downtown Minneapolis. A Monarch representative declined to comment on the price paid for the hotel. A statement issued by Monarch characterized the deal as a “significant discount” and an “off-market purchase due to disruption caused by the pandemic.”

Monarch is making the acquisition in partnership with Norwalk, Ct.-based HEI Hotels & Resorts.

Monarch made headlines throughout the summer in Minneapolis after acquiring the mezzanine loan for The Dayton’s Project. Amid a legal battle with New York-based 601W Companies, the owner and redeveloper of the Dayton’s Project, Monarch attempted to hold a foreclosure sale for the property. The imbroglio ended in August when 601W secured new financing.

The Westin Minneapolis is housed in the former Farmers & Mechanics Bank, which dates to 1941. Minneapolis-based Ryan Companies US Inc. converted the property into a hotel; the project was completed in 2007 and became the first Westin hotel in the Twin Cities. An HEI fund was an investor in the project.

New York-based Carey Watermark Investors Inc. acquired the hotel at 88 Sixth Street S. for $66.4 million in February 2015. According to Hennepin County property tax records, the property has been owned by the CWI Minneapolis Hotel LLC entity.

In early April, Monarch announced its acquisition of three office buildings in the North Loop in partnership with Detroit-based Crestlight Capital. The properties had been owned by Minneapolis-based Swervo Development Corp., led by the successful but low-profile Ned Abdul. The properties are located at 241 N. 5th Avenue, 411 Washington Avenue, and 500 N. 3rd Avenue.

Monarch is no small player. In December 2020, reports surfaced that it had raised $3 billion for one of its funds. The company has approximately $9 billion in assets under management. Monarch focuses on distressed properties. The hotel industry has been particularly pummeled by the pandemic. The Westin Minneapolis marks the company’s 12th hotel acquisition this year.