Rockpoint, a Boston-based real estate private equity firm, and Highgate, a leading hotel management, investment and development company, today announced the sale of the Scottsdale Plaza Resort and Villas, a historic hotel in the heart of Paradise Valley, Arizona. Terms of the transaction were not disclosed.
Centrally located in Paradise Valley, the Scottsdale Plaza Resort and Villas is a 404-room hotel featuring more than 50,000 square feet of event space, five pools, tennis courts, a state-of-the-art fitness center, and luxury spa amenities. The Hotel is conveniently located in close proximity to Old Town Scottsdale and downtown Phoenix and is surrounded by the expansive Sonoran Desert with nearby hiking trails and nearly 40 acres of gardens. Originally built in 1976, the Hotel has a deep-rooted legacy as one of the largest operated resorts in Arizona.
“Rockpoint and Highgate executed on a shared vision for the resort, and we are pleased to have added significant value through several property enhancements, expense saving initiatives, and strategic revenue optimization,” said Aric Shalev, a Managing Member and Co-President at Rockpoint. “This investment underscores Rockpoint’s ability to collaborate with best-in-class operating partners and identify and add value to high-quality assets in high-growth markets. We believe the resort is well positioned to build on its rich heritage under new ownership.”
During its ownership, Rockpoint and Highgate have maintained the property’s rich heritage while also making upgrades like instituting a membership arrangement with Preferred Hotels and Resorts, modernizing the hotel’s e-commerce presence, and implementing institutional revenue management strategies. These enhancements positioned the property to benefit from strong underlying market fundamentals following the COVID-19 pandemic.
“Highgate is pleased to have partnered with Rockpoint on Scottsdale Plaza Resort and Villas, and to have successfully executed on our value-add plan and delivered strong results,” said Zach Berger, Principal at Highgate. “We look forward to Highgate’s continued role operating the resort in conjunction with the buyer, and anticipate continuing to pursue the many opportunities to enhance this exceptional property.”
Newmark acted as broker for Rockpoint and Highgate on this transaction.
About Rockpoint
Rockpoint is a real estate private equity firm that employs a fundamental value approach to investing, targeting select product types and markets throughout the United States. The firm applies a consistent and disciplined investment approach across its investment programs, which span distinct return profiles. Rockpoint continually assesses market opportunities and evaluates potential investments relative to intrinsic value and cash flow, targeting investments that Rockpoint believes are inefficiently priced or misunderstood by the broader market. Rockpoint proactively pursues opportunities that exhibit strong value potential that can be realized through impactful asset management. Since 1994, the firm’s co-founders with others have sponsored 19 investment vehicles and related co-investment vehicles through Rockpoint and a predecessor firm and have invested or committed to invest in 503 transactions with a total peak capitalization of approximately $80 billion. To learn more, visit www.rockpoint.com.
About Highgate
Highgate is a leading real estate investment and hospitality management company with over $15 billion of assets under management. Highgate has a 35-year track record as an investment manager, operating partner, and developer for REITs, private equity firms, sovereign wealth funds, high net worth individuals, and other institutional investors. With a particular focus in hospitality real estate, Highgate’s portfolio includes approximately 500 owned and/or managed hotels comprising over 84,000 rooms across the United States, Europe, Latin America, and the Caribbean. Highgate’s capabilities extend to adjacent real estate verticals including multifamily, short-term rentals, and diversified healthcare real estate, as well as investments in real estate-linked securities, technology platforms, and hospitality-related operating businesses. Highgate maintains corporate offices in New York, Dallas, Los Angeles, Miami, Seattle, Waikiki, London and Lisbon. For more information, visit: www.highgate.com.
