Why Is a California Investor Buying up so Many South Dakota Motels?
So why is an un-named California investor buying up so many South Dakota motels and hotels? That's the question many are asking.
According to an article in the Mitchell Daily Republic, a California-based company called AG Dakota has purchased 17 properties across the state since the first of the year - and it doesn't sound like they're done.
According to David Hooper, senior operations director, the company is under contract to purchase six more properties and in negotiations for at least 10 beyond that.
So far, the company has purchased properities in Arlington, Canistota, Chamberlain, Clear Lake, Fort Pierre, Ipswich, Kadoka, Kennebec, Lemmon, Martin, Mitchell. Murdo, Presho, Rapid City, Salem and Whitewood.
According to the South Dakota Secretary of State Office, the "AG" in the company name is based on the initials of the principal investor, a man who likes his privacy,
According to Hopper, the company has been in the hospitality business since 1999 and is a "family-owned company with Christian and American values at its core."
He says up to this point the company has spent around $15-million for the properties, with another $50-million in renovations expected to be spent over the next 10 years.
Hooper says what AG Dakota is trying to do is "invest in towns, cultures and experiences."
He says in California the business climate there is one of lawsuits being filed over trivial matters simply in an effort to win damages. In South Dakota, Hooper says, "You can run your business the way you want to run it."
To read more on the story, go to the Mitchell Daily Republic website.
Source: Mitchell Daily Republic