Dec. 24—ROCHESTER — A big name in hospitality — Terratron — is checking into the Rochester market with a $29.5 million purchase of a Second Street Southwest duel brand hotel property.
Terratron, a Utah-based firm with a big presence in Minnesota, purchased the Homewood Suites and Courtyard By Marriott hotels and related parking areas at 165/161 13th Ave. SW on Dec. 18.
The hotels, which stand across Second Street from Mayo Clinic’s Saint Marys campus, house a combined 225 rooms plus the popular Saints On Second restaurant.
This purchase marks the first Rochester hospitality investment for Terratron, which owns Minnesota hotels in Bloomington by the Mall of America and in Mankato. Terratron made the acquisition through its Mankato office.
“We’ve watched Rochester for some time. It’s certainly got durable demand generators in Mayo Clinic, Saint Marys, DMC, and (Bold. Forward.) Unbound. We think it has a very bright future. These two hotels are well located and have been well cared for over the years,” said Terratron President David Peters. “Both hotels have great teams in place. We’re delighted to keep the momentum going on what has been great guest satisfaction. This isn’t a problem we’re trying to fix. It’s a great story that we want to extend.”
Carpenter and Torgenson II, LLC, sold the pair of hotels, which were operated by TPI Hospitality of Willmar. The hotels were built in 2005 and 2013 as a joint project between Rochester’s Carpenter family and Torgerson Properties. The same principals built, own and operate the nearby Marriott SpringHill Suites at 1125 Second St. SW.
Peters said that Terratron plans to retain the staff of the two hotels, keep Saint’s On Second open and continue to operate under the same hotel brands.
“We’re looking forward to taking them to the next level,” he said.
This is actually Terratron’s second Rochester real estate deal. In 2021, it paid $4.34 million for the 87-year-old brick building that houses the downtown U.S. Post Office branch at 102 Broadway South in the heart of downtown Rochester.
While a proposal for building a hotel on that site has been floated, Peters said development plans are still being worked out.
“We see the potential in the redevelopment of that building, but we’re definitely going to look at other opportunities in the community. Our heart and emphasis is in hospitality, but we have done housing and we have done retail. So you never know,” he said.
Whatever happens with the Broadway site, Terratron is very interested in growing its presence in Rochester.
“We’re looking to deepen our investments in Rochester. We’re growing and part of our growth has been because we’ve got great people who want more opportunity. So when the opportunity to invest in Rochester came around, we had a number of team members who were excited to help put their shoulder to it,” said Peters.