Asking Price: $9,250,000
Reno Cost: $2,270,000 (around 15k per door plus 50k exterior budget)
Exit Cap and Sale Price:
Year 3 operating cap: 9.3%
Year 4 operating cap: 9.6%
The target would be to exit around years 3 or 4
Target Exit Price would be between 16.2 and 16.7 Million
Target Exit Cap is 5.5%
***Financials available upon request***
The Property is a 148-unit hotel located on Grant Rd north of downtown, The property is currently generating over 1.5M in gross income as a hotel + other income from restaurants and other means, and is set up very positively to cash flow as a hotel during the conversion.
Rooms (Every Guest Room has a
Connecting Door): 148 300SF Studio Apartments (25x12)
Meeting Room in Lobby (Can be Converted
to Common Areas or Guest Laundry
Facilities) 1,665 SF
Breakfast Room (Can be Converted to
Common Areas or Guest Laundry Facilities) 500 SF (25x25)
Parking Ratio (2 Parking Spots / Guest Room)
300+ Parking spots Could add covered parking and charge an extra 200/month for covered parking (didn't include this in the underwriting but is a possibility)
Gross Stabilized Income: $1,709,748
The property has a triple net restaurant and a solar lease on the roof that combined are bringing in an extra $250,000 per year. There is the opportunity to do $165/mo per door with RUBS ($292,685/yr) and charge for laundry($25,000/Yr) which will bring in an additional $317,685 in income for the building post-conversion.
DISCLAIMER: This is an assignment of contract. A legally binding purchasing contract with memorandum has been signed with the Seller. One or more members, directors or employees of Sell Quick for Cash LLC are licensed real estate agents in the state of Arizona with Gentry Real Estate. There is no agency, expressed or implied, between Buyer and Sell Quick for Cash LLC or any of its members, directors or employees. Any attempts to renegotiate or make contact with the owner will result in legal action.