Värde Partners and Hawkins Way Capital announced the recent purchase of 39 Dalton Street in the Back Bay neighborhood of downtown Boston, Massachusetts, from Host Hotels & Resorts. The 29-story, 1.1 million square foot property currently operates as the 1,220-key Sheraton Boston Hotel.

This marks the sixth acquisition of the Värde Partners and Hawkins Way Capital joint venture targeting over $1 billion of value-add and distressed hospitality and housing assets in major U.S. cities. Today, the joint venture’s portfolio also comprises the DoubleTree by Hilton Metropolitan in the heart of Midtown Manhattan, along with four other residential developments in New York and California.

“We will continue to leverage our hospitality, multifamily and student housing expertise to refresh and/or reposition assets such as the Sheraton Boston Hotel in order to seek to maximize value,” said Ross Walker of Hawkins Way Capital.

“Our strategy for the joint venture is to build a high quality, inflation protected, and cash flow generative portfolio in major US cities,” said Francisco Milone, Partner at Värde Partners. “The pandemic is driving this opportunity among distressed hospitality and select housing assets in gateway markets with high demand for certain alternative hospitality, residential, and student housing products.”