The Charmant Hotel, a prominent downtown La Crosse landmark, has been sold to Hendricks Commercial Properties, a national real estate firm founded by Wisconsin billionaire Diane Hendricks. The acquisition was finalized following the La Crosse City Council's approval to transfer a key development agreement from the previous owners, the Weber Group, to the new proprietors.
Key Takeaways
- The Charmant Hotel in downtown La Crosse has been purchased by Hendricks Commercial Properties, LLC.
- The acquiring firm was founded by Diane Hendricks, co-founder of ABC Supply and recognized as Wisconsin's wealthiest woman.
- The La Crosse City Council officially approved the transfer of the hotel's existing development agreement to the new ownership.
- This transaction ensures the continued operation of a significant local business and landmark property under new, well-capitalized leadership.
Details of the Acquisition
The ownership of the boutique Charmant Hotel has officially changed hands. The property was acquired by Hendricks Commercial Properties, a Beloit, Wisconsin-based company with a diverse portfolio of real estate assets across the United States. The seller was the Weber Group, the original developer responsible for transforming the historic building into a luxury hotel.
A critical step in finalizing the sale occurred at a recent La Crosse City Council meeting. Council members voted to approve a resolution transferring the development agreement, originally established with the Weber Group, to Hendricks Commercial Properties. This formal approval by the city was necessary to ensure the terms and obligations associated with the property's development carry over to the new owner.
The New Ownership Profile
Hendricks Commercial Properties is a significant player in the national real estate market. The company was founded by Diane Hendricks, a prominent figure in American business. Hendricks co-founded ABC Supply, one of the nation's largest wholesale distributors of roofing, siding, and other select exterior building products.
Her business success has made her a widely recognized billionaire and the richest woman in Wisconsin. Beyond her corporate achievements, Hendricks is also known for her significant financial support of conservative political causes and candidates.
Who is Diane Hendricks?
- Company: Co-founder and chairperson of ABC Supply.
- Net Worth: Widely reported as a billionaire and Wisconsin's wealthiest individual.
- Real Estate: Founder of Hendricks Commercial Properties, which owns properties nationwide.
- Background: Started her career with her late husband, Ken Hendricks, flipping houses before building their business empire.
The acquisition of The Charmant Hotel adds a distinguished hospitality property to the firm's extensive portfolio, signaling a notable investment in the La Crosse market.
City's Role and the Development Agreement
The involvement of the La Crosse City Council was centered on the transfer of the hotel's development agreement. Such agreements are common tools used by municipalities to encourage and guide significant development projects that benefit the community.
Understanding TIF Agreements
Many municipal development agreements involve a mechanism called Tax Incremental Financing (TIF). In a TIF district, the property tax base is frozen at a pre-development level. As the new development increases the property's value, the additional tax revenue generated (the "increment") is used to pay back public or private investments made to support the project. This can include infrastructure improvements or other development costs. The city's approval ensures these financial arrangements are legally transferred to the new property owner.
By approving the transfer, the city ensures that any pre-existing terms, conditions, and potential financial incentives tied to the hotel's development remain in effect under the new ownership. This provides stability for both the city and the business, ensuring the property continues to operate as a key economic anchor for the downtown area.
The smooth transfer indicates a cooperative relationship between the new owners and city officials, aimed at maintaining the hotel's status and contribution to the local economy.
Implications for Downtown La Crosse
The sale of a landmark property like The Charmant Hotel to a high-profile owner is a significant event for the city's business landscape. The hotel, developed from a historic candy factory, is often cited as a cornerstone of downtown La Crosse's revitalization and a premier destination for tourists and residents alike.
The transition to an owner with deep financial resources and extensive experience in property management is seen by many as a positive step. It suggests a long-term commitment to maintaining the quality and prestige of the hotel. For the local community, this ensures that a key employer and taxpayer remains a stable and flourishing part of the downtown economy.
Furthermore, an investment from a prominent national firm like Hendricks Commercial Properties can enhance the city's reputation as a desirable location for business. It may attract further outside investment and signal confidence in the economic future of the La Crosse region.
While the operational plans for the hotel under new management have not been detailed, the acquisition itself marks a new chapter for one of La Crosse's most celebrated properties.
