Terratron Inc. makes its first foray into Rochester with the $29.5 million purchase of a Second Street Southwest dual-branded hotel property. The firm—based in Park City, Utah, but with hotels in Bloomington and Mankato—purchased the adjoining Homewood Suites by Hilton Rochester Mayo Clinic Area/Saint Marys and Courtyard Rochester Mayo Clinic Area/Saint Marys hotels and related parking areas.
The hotels, which stand across Second Street Southwest from Mayo Clinic’s Saint Marys Campus, house a combined 225 rooms plus the popular Saints on Second Bar and Grill. This purchase marks the first Rochester hospitality investment for Terratron. Terratron made the acquisition through its Mankato office.
“We’ve watched Rochester for some time,” says Terratron President David Peters in a prepared statement. “It’s certainly got durable demand generators in Mayo Clinic, Saint Marys, and Destination Medical Center. We think it has a very bright future. These two hotels are well located and have been well cared for over the years. 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 Rochester Mayo Clinic Area/Saint Marys.
Peters says Terratron plans to retain the staff of the two hotels, keep Saints on Second Bar and Grill open and continue to operate under the same hotel brands.
“We’re looking forward to taking them to the next level,” Peters adds.
This is 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 downtown. While a proposal for building a hotel on that site has been floated, Peters says development plans are still being worked out.