New owners paid $3.72 million for a hotel on Rochester's South Broadway

Jeff Kiger, Post-Bulletin, Rochester, Minn.
·2 min read

Dec. 5—ROCHESTER — A new owner recently checked into a south Rochester hotel with a $3.72 million purchase, which is significantly less than the property sold for in 2019, 2018 and 2013.

Cactus Hospitality LLC, which is led by Vishal Patel, purchased the 145-room hotel previously called

Ramada by Wyndham

at 1625 South Broadway on Nov. 30, 2022. In the wake of the sale, the hotel is transitioning to operating under the Choice hotel brand.

Olmsted County estimated the total market value of the hotel and related parcels at $3.47 million for 2022-2023.

The November sale papers list Cactus Hospitality as being based in Jefferson, Wis. The company's Minnesota incorporation documents report that Cactus Hospitality's mailing address is Fargo, North Dakota.

Med Town Hospitality LLC of Woodbury sold the 49-year-old hotel. Med Town purchased the property in 2019 from Access Point Financial for $4.6 million.

Access Point acquired it in 2018

for $5.75 million in sheriff's bankruptcy sale.

Investment specialists Jon Ruzicka, Jake Erickson, Jared Plamann and Joseph Ferguson marketed the hotel for Marcus & Millichap's Minneapolis office and lined up the buyer.

"Prior to COVID the Rochester hotel market was one of the best performing and most sought-after investment markets in the entire state. While it has been slow to recover it remains highly attractive amongst hotel investors as it continues its recovery," stated Ruzicka in the announcement of the deal. "This investment provided the buyers the unique opportunity to acquire a property with a significant value-add component at well below replacement cost. They are planning exciting changes for the property."

This is the latest milestone in the hotel's up and down history.

In the past 20 years, it has operated under a number of hotel brands including Comfort Inn and Suites, La Quinta,

America's Best Value Inn

, Ramada by Wyndham and Choice.

The closure of the Western-themed Cowboy Jack's bar and grill in 2019 left the hotel's restaurant space empty until

the Crooked Pint Ale House opened

there in 2021. In 2022, Goonie's Comedy Club launched weekly comedy shows in the Crooked Pint space.

Some of the hotel's turbulent history can be attributed to the uncertainty caused by

a previous owner's bankruptcy

.

Wayzata-Rochester 16 Hospitality Associates, which p

urchased the hotel for $4.8 million in 2012

, filed for bankruptcy in 2016. Wayzata-Rochester 16 owed $6.6 million to Access Point at the time of the bankruptcy filing.