Exclusive Listing MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Table of Contents
CONTENTS
PROPERTY INFORMATION 3
FINANCIAL ANALYSIS 6
LOCATION INFORMATION 9
PROPERTY IMPRESSIONS 12
SALE COMPARABLES 18
ADVISOR BIOS 23
CONFIDENTIALITY & DISCLAIMER
All materials and information received or derived from NewGen Advisory its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither NewGen Advisory its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. NewGen Advisory will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. NewGen Advisory makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. NewGen Advisory does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by NewGen Advisory in compliance with all applicable fair housing and equal opportunity laws.
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 2 PROPERTY INFORMATION
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Executive Summary
OFFERING SUMMARY PROPERTY & LOCATION OVERVIEW Sale Price: $699,000 NewGen Advisory is pleased to present for sale the exclusive listing for the Magnuson Hotel located in Sierra Cap Rate: 12.01% Vista, Arizona. The Magnuson Hotel is a unique fee simple investment property that features 25 guest rooms located NOI: $83,947 less than 1 mile from the 70,000 acre Fort Huachuca Military Base. The hotel is located in the heart of Arizona Lot Size: +/- 1.47 Acres Wine Country and is a short drive to several leisure outdoor demand generators including; Coronado National Memorial, San Pedro Riparian National Conservation Area, Year Built: 1965 and the Kartchner Caverns. The Magnuson Hotel also features a very large 3 bedroom / 3 bathroom on-site Building Size: +/- 8,133 managers quarters consisting of 1,500 sqft. Renovated: 2018 SALE HIGHLIGHTS - Conversion Opportunity for Multi-Family Zoning: GC Commercial - 4.5 Stars on Trip Advisor, on 8.6 Booking.com Price / SF: $85.95 - Very Large Manager's Quarter's (3 bedroom / 3 bathroom)
- Large Rooms and Some Units Offer Full Kitchenettes Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 4 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Details
SALE PRICE $699,000 UTILITIES & AMENITIES
HOTEL SALE OVERVIEW Electric: Sulphur Springs Valley Electric Water: Liberty Water Brand Magnuson Hotel Gas: Southwest Gas Franchise Of Magnuson Hotels Waste: AZ Hauling & Disposal Number Of Rooms 25 Cable/Internet: Cox Communications Price Per Key $27,960 Phone: Cox Communications Revenue Per Room $6,994.40 Washer Specifications: 1 30lb Unimac Adjusted NOI $83,947 Dryer Specifications: 1 30lb Huebsch Cap Rate 12.01% Door Locks: Electornic Key Card Cash On Cash Return 22.66%
ROOM MIX BUILDING INFORMATION King Room 10 Apn # 106-67-009 Queen Room 7 Year Opened 1965 Two Queen Bed Suite With Kitchenette 1 Building Size +/- 8,133 SF Two Double Bed Room 6 Roof Flat Three Double Bed Suite With Kitchenette 1 Construction Type Wood Frame TOTAL ROOMS 25 Number Of Floors 1 Number Of Rooms 25 Free Standing Yes CAPITAL EXPENDITURES OVERVIEW Zoning GC Commercial Paint - Exterior/Interior $15,000 Parking Surface Asphalt LED Lighting Conversion & Security Cameras $5,500 Manager's Quarters Yes, 3 Bedroom/3 Bathroom (1,500 sqft) Casegoods Replacement & Office Lobby Reno $9,500 Bedding $5,000 Landscaping $2,000 Full Property Water Softener System $7,000 Walkway Resurface $6,000
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 5 FINANCIAL ANALYSIS
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Income & Expenses
INCOME SUMMARY % OF TOTAL
Room Revenue $174,860 100.0 % Gross Income $174,860
EXPENSE SUMMARY % OF REVENUE
Hotel Supplies $5,750 3.3 % Commissions $3,589 2.1 % Office Expense $1,390 0.8 % Dues and Subscriptions $1,261 0.7 % Advertising $7,122 4.1 % Merchant Fees $5,161 3.0 % Web and Computer Expense $1,007 0.6 % Property Tax $7,425 4.2 % Sales Tax $15,347 8.8 % Bank Service Charges $532 0.3 % Property Insurance $4,075 2.3 % Payroll Taxes $1,021 0.6 % Accounting Fees $2,305 1.3 % Telephone and Internet $10,385 5.9 % Water $1,554 0.9 % Gas and Electric $19,448 11.1 % Waste $3,533 2.0 % Gross Expenses $90,912
Net Operating Income $83,947
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 7 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Financial Summary
PROPOSED FINANCING
Purchase Price $699,000 Down Payment (20%) $139,800.00 Senior Loan (80%) $559,200.00 Interest Rate 5.5 Amortization (yrs) 25 Monthly Debt Payment $3,454
OPERATING SUMMARY
Total Rooms 25 Occupancy % 57.5% ADR $40 RevPAR $23 Gross Income $174,860 Operating Expenses $90,912 Net Operating Income $83,947 Debt Service $41,451 Debt Coverage Ratio 2.03
INVESTMENT SUMMARY
Pre-Tax Cash Flow $42,496 Cash-on-Cash Return (yr 1) 31.13 % CAP Rate 12.0% Price per Room $27,960
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 8 LOCATION INFORMATION
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Location Summary
MOUNTAIN VIEWS FORT HUACHUCA With picturesque mountain views in all directions and a temperate Established March 3, 1877 - Fort Huachuca is located 15 miles four-season climate, Sierra Vista beckons visitors with clear skies, north of the Mexican border, and at the northern end of fascinating history, and world-class birding. Surrounded the Huachuca Mountains - next to Sierra Vista. in the 2010 census, by towering 10,000 foot mountains and known as the "Humming Fort Huachuca had a population of about 6,500 active duty Bird Capital of the U.S.," Sierra Vista is primed for outdoor soldiers, 7.400 military family members and 5,000 civilian exploration. From its early days as a community growing under the employees. During weekday work hours, Fort Huachuca has over protective wing of neighboring Fort Huachuca during the Apache 18000 people on post - making it one of the busiest Army Wars, Sierra Vista has blossomed into the recreational and cultural installations in the country. hub of Cochise County. Thanks to the Fort, Sierra Vista is a melting pot of ethnic cuisine, where independent restaurants serve The major units are the United States Army Network authentic dishes from around the world. Enterprise Technology Command (NETCOM), Army Military Auxiliary Radio System (MARS), Joint Interoperability Test Command, Sierra Vista is ideal for the outdoor enthusiast, with the Information Systems Engineering Command (ISEC), the scenic panoramas, rolling byways, and outdoor trails by bike, boot, Electronic Proving Ground, and the United States Army Intelligence or hoof. With a 360-degree mountain view, visitors see why the Center. Libby Army Air eld is also on post and shares its runway City with the mountain views, "Sierra Vista" in Spanish, is so with the Sierra Vista Municipal Airport. aptly named.
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 10 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Retailer Map
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 11 PROPERTY IMPRESSIONS
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Impressions
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 13 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Impressions
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 14 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Impressions
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 15 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Impressions
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 16 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Property Impressions
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 17 SALE COMPARABLES
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Sale Comps
SUBJECT PROPERTY
43 W. Fry Blvd. | Sierra Vista, AZ 85635 Sale Price: $699,000 Lot Size: 1.47 Year Built: 1965 Building SF: 8,133 SF No. Rooms: 25 $ / Room: $27,960 Cap: 12.01% NOI: $83,947
MOTEL 6 1 637 S Whetstone Commerce Dr | Benson, AZ 85602 Sale Price: $1,600,000 Lot Size: 1.35 1 Year Built: 1998 Building SF: 21,796 SF Price PSF $73.41 No. Rooms 63 $ / Room $25,396 CAP: 8% Closed: 06/01/2019
QUALITY INN 2 699 Ocotillo Road | Benson, AZ 85602 Sale Price: $2,700,000 Lot Size: 3.21 2 Year Built: 1985 Building SF: 33,700 SF Price PSF $80.12 No. Rooms 83 $ / Room $32,530 CAP: 7.31% Closed: 05/08/2019
SIERRA VISTA EXTENDED STAY 3 1850 E. Wilcox Dr. | Sierra Vista, AZ 85635 Sale Price: $1,850,000 Lot Size: 1.57 3 Year Built: 2009 Building SF: 35,584 SF Price PSF $51.99 No. Rooms 69 $ / Room $26,811 Closed: 05/04/2020
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 19 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Sale Comps
REGENCY INN & SUITES 4 250 Carroll Dr. | Sierra Vista, AZ 85635 Sale Price: $1,033,000 Lot Size: 1 4 Year Built: 1987 Building SF: 16,352 SF Price PSF $63.17 CAP: 8% Closed: 02/04/2019
LANDMARK LOOKOUT LODGE 5 781 AZ-80 | Tombstone, AZ 85638 Sale Price: $1,100,000 Lot Size: 2.73 5 Year Built: 1964 Building SF: 15,141 SF Price PSF $72.65 No. Rooms 40 $ / Room $27,500 CAP: 12% Closed: 10/25/2018
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 20 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Sale Comps Summary
# OF PRICE SUBJECT PROPERTY PRICE ROOMS PER ROOM Magnuson Hotel 43 W. Fry Blvd. $699,000 25 $27,960 Sierra Vista, AZ 85635
# OF PRICE SALE COMPS PRICE ROOMS PER ROOM CLOSE Motel 6 637 S Whetstone $1,600,000 63 $25,396 06/01/2019 Commerce Dr Benson, AZ 85602 Quality Inn 699 Ocotillo Road $2,700,000 83 $32,530 05/08/2019 Benson, AZ 85602 Sierra Vista Extended Stay $1,850,000 69 $26,811 05/04/2020 1850 E. Wilcox Dr. Sierra Vista, AZ 85635 Regency Inn & Suites 250 Carroll Dr. $1,033,000 56 $18,446 02/04/2019 Sierra Vista, AZ 85635 Landmark Lookout Lodge 781 AZ-80 $1,100,000 40 $27,500 10/25/2018 Tombstone, AZ 85638
# OF PRICE PRICE ROOMS PER ROOM Totals/Averages $1,656,600 62.2 $26,633
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 21 MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Sale Comps Map
SUBJECT PROPERTY 43 W. Fry Blvd. | Sierra Vista, AZ 85635
1 MOTEL 6 2 QUALITY INN 3 SIERRA VISTA EXTENDED STAY 637 S Whetstone Commerce Dr 699 Ocotillo Road 1850 E. Wilcox Dr. Benson, AZ 85602 Benson, AZ 85602 Sierra Vista, AZ 85635
4 REGENCY INN & SUITES 5 LANDMARK LOOKOUT LODGE 250 Carroll Dr. 781 AZ-80 Sierra Vista, AZ 85635 Tombstone, AZ 85638
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 22 ADVISOR BIOS
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected]
NewGenAdv.com MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Advisor Bio 1
DINESH DAN RAMA Principal/Designated Broker
[email protected] Direct: 602.648.2715 | Cell: 602.478.9636
AZ #BR515223000 // NM #20316 CO #ER.100082810 PROFESSIONAL BACKGROUND Dinesh (Dan) Rama Co-founder, Principal and Managing Director, NewGen Advisory Designated Broker, State of Arizona, State of New Mexico, and State of Colorado..
Dinesh Rama is a seasoned hospitality professional who began his career as a hotel owner/ operator in 1994 after earning dual Bachelor’s Degrees in History and Mathematics from Arizona State University. Dan went on to grow his portfolio as a franchisee of Red Brick Pizza, InterContinental Hotels, Marriott, G6 Hospitality, Wyndam Hotels and Choice International. He maintains General Manager Certifications from Holiday Inn, Motel 6 and Days Inn.
Over the course of his 26-year hospitality career, Dinesh was integral in the disposition of over one billion of hospitality assets; brokering and advising clients on acquiring, merging, and divesting of hospitality assets throughout the United States.
Dinesh earned his Certification for Hotel Industry Analytics (CHIA) - the only hotel-related certification that recognizes advanced skill and knowledge in the industry. This globally-recognized professional credential validates Dinesh’s advanced knowledge in hotel industry analytics including foundational metrics, definitions, formulas and methodologies. Dinesh also holds a Certified Hotel Owners (CHO) Certificate from the Asian American Hotel Owners Association (AAHOA).
In addition to his company responsibilities at NewGen, Dinesh is an active member of the community: engaged in various local and national industry organizations. He served as the Southwest Regional Director for AAHOA - the largest hospitality owners association in the United States - and now serves as Ambassador. He also serves on the Board of Directors for the Arizona Dinesh Dan Rama Jigar "Jay" Desai Lodging and Tourism Association’s (AZLTA). T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 Dinesh lives in Gilbert, AZ with his wife Chetna,[email protected] son Suraj, [email protected] daughter Sonya. When he’s not hard at workNewGenAdv.comadvising his clients, you’ll find Dineshenjoying a round of golf or cheering on 24 his beloved Denver Broncos.
EDUCATION BA History & Mathematics University of Arizona BA History Arizona State University Certified Hotel Owner (CHO) General Manager Certifications from Holiday Inn, Motel 6, Days Inn Arizona Real Estate Broker, New Mexico Qualifying Broker, Colorado Employing Broker
MEMBERSHIPS Asian American Hotel Owners Association Arizona Lodging & Tourism Association American Lodging Association Arizona Board of Realtors Global Ties Omega Delta Phi Alumni University of Arizona Alumni Association Arizona State Alumni Association University of Arizona Alumni Association Arizona State University Alumni Association MAGNUSON HOTEL 43 W. Fry Blvd., Sierra Vista, AZ 85635
Advisor Bio 2
JIGAR "JAY" DESAI Associate
[email protected] Direct: 602.648.2700 | Cell: 520.664.4091
PROFESSIONAL BACKGROUND Jigar “Jay” Desai joined the NewGen Advisory team of Arizona in 2017. He is focused throughout the Southwestern regions of Texas to California assisting our clients with all their hotel and lodging transactional needs. Jay has a unique ability to connect prospective buyers with sellers while focusing on and balancing the critical financial needs of both making him a true asset to any team and every client.
Jay’s extensive background in the hotel industry has given him the insight to better understand the critical needs of his clients. Having grown up in the hotel industry, Jay’s ability to relate and understand the rigorous demands of hotel operations has provided the insight which has led to facilitate successful transactions. Furthermore, prior to joining the NewGen team, Jay was immersed into the financing and lending world with a large national bank which gave him the unique view into the lending world and provided the connections which allow his clients to seek out financing for even the most challenging assets.
EDUCATION Jigar graduated from the University of Arizona in 2011 attaining a dual degree from Eller College of Management in Finance and Real Estate.
MEMBERSHIPS Jigar is a member and ambassador for the Asian American Hotel Owners Association (AAHOA) and holds certifications for Choice Hotels and Best Western.
Dinesh Dan Rama Jigar "Jay" Desai T 602.648.2715 T 602.648.2700 C 602.478.9636 C 520.664.4091 [email protected] [email protected] NewGenAdv.com 25 Arizona California New Mexico Texas Colorado 1747 E Morten Avenue 1240 N Lakeview Ave 500 Marquette Ave 1106 N State Hwy 360 7900 E Union Ave Suite 202 Suite 175 Suite 1200 Suite 302 Suite 1100 Phoenix, AZ 85020 Anaheim Hills, CA 92807 Albuquerque, NM 87102 Grand Prairie, TX 75050 Denver, CO 80237