825 Ocean Highway Pocomoke City, Md 21851

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825 Ocean Highway Pocomoke City, Md 21851 825 OCEAN HIGHWAY POCOMOKE CITY, MD 21851 Shailesh Shah, CCIM Managing Director 757.695.3180 [email protected] Wesley Cox, CCIM Senior Advisor 410.543.2421 [email protected] SVN | SHAH COMPANIES | 3213 DUQUESNE DRIVE, CHESAPEAKE, VA 23321 OFFERING MEMORANDUM PROPERTY INFORMATION 1 Property Summary Property Description Complete Highlights Additional Photos LOCATION INFORMATION 2 Location Maps Additional Photos Additional Photos Additional Photos Additional Photos Additional Photos Additional Photos FINANCIAL ANALYSIS 3 Financial Summary Income & Expenses Econo_Lodge_2018_Fiancial_Statement.pdf Unit Mix Summary DEMOGRAPHICS 4 Demographics Report Demographics Map ADVISOR BIOS 5 Advisor Bio & Contact 1 SVN | SHAH COMPANIES | 3213 DUQUESNE DRIVE, CHESAPEAKE, VA 23321 OFFERING MEMORANDUM 1 PROPERTY INFORMATION 825 Ocean Highway Pocomoke City, MD 21851 ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 3 Property Summary OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $2,300,000 The subject property comprises five buildings, four of which are guest room buildings with 62-units and one that houses the lobby, breakfast dining area and administrative offices. The hotel's stucco and block exteriors were in good Lot Size: 8.6 Acres condition. The guest room buildings' roofs are made of a combination of wood with asphalt shingles or aluminum, as well as concrete with a rubber membrane; the lobby building roof is made of wood covered with aluminum. Year Built: 1963 PROPERTY HIGHLIGHTS Building Size: 22,665 SF • Outstanding location on Route 13. Excellent location for owner/operator. • Excellent asset features the newest and most desirable guest room product in the market. Zoning: B2-Gneral Business • Price at significant discount to replacement. Market: Eastern Shore • Econolodge is member of Choice Hotels Group. Submarket: ROUTE 13 Price / SF: $101.48 ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 4 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Property Description PROPERTY OVERVIEW The subject property comprises five buildings, four of which are guest room buildings with 62-units and one that houses the lobby, breakfast dining area and administrative offices. The hotel's stucco and block exteriors were in good condition. The guest room buildings' roofs are made of a combination of wood with asphalt shingles or aluminum, as well as concrete with a rubber membrane; the lobby building roof is made of wood covered with aluminum. LOCATION OVERVIEW Pocomoke City in Worcester Country, MD. City is a part of the Salisbury, Maryland-Delaware Metropolitan Statistical Area. Pocomoke City is located on Maryland’s Eastern Shore at the intersection of U.S. Route 13 and Route 113, and is five miles from the Maryland-Virginia state line. ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 5 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Complete Highlights SALE HIGHLIGHTS • Outstanding location on Route 13. Excellent location for owner/operator. • Excellent asset features the newest and most desirable guest room product in the market. • Price at significant discount to replacement. • Econolodge is member of Choice Hotels Group. ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 6 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 7 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. 2 LOCATION INFORMATION 825 Ocean Highway Pocomoke City, MD 21851 ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 8 Location Maps ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 9 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 10 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 11 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 12 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 13 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 14 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Additional Photos ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 15 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. 3 FINANCIAL ANALYSIS 825 Ocean Highway Pocomoke City, MD 21851 ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 16 Financial Summary INVESTMENT OVERVIEW 2017 2016 2015 Price $2,300,000 $2,560,000 $2,560,000 Price per Room $37,096 $41,290 $41,290 RevPAR - - - ADR - - - CAP Rate - - - Cash-on-Cash Return (yr 1) - % - % - % Total Return (yr 1) - - - Debt Coverage Ratio - - - OPERATING DATA 2017 2016 2015 Gross Scheduled Income - - - Other Income - - - Total Scheduled Income - - - Vacancy Cost - - - Gross Income - - - Operating Expenses - - - Net Operating Income - - - Pre-Tax Cash Flow - - - FINANCING DATA 2017 2016 2015 Down Payment - - - Loan Amount - - - Debt Service - - - Debt Service Monthly - - - Principal Reduction (yr 1) - - - ECONOLODGE, POCOMOKE CITY, MD | 825 OCEAN HIGHWAY, POCOMOKE CITY, MD 21851 SVN | Shah Companies | Page 17 The information presented here is deemed to be accurate, but it has not been independently verified. eW make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated. Income & Expenses INCOME SUMMARY 2017 2016 2015 Total Revenue $748,263 $836,976 $686,418 Cost of Goods sold -$46,855 -$37,738 -$31,418 Other Income $14,114 $21,526 $13,260 Gross Income $715,522 $820,764 $668,260 EXPENSE SUMMARY 2017 2016 2015 Compensation of Officers ( $ 84,600) $0 $0 $0 Salaries and Wages $103,920 $148,403 $155,030 Repairs and Maintenance $22,368 $51,408 $42,620 Taxes and Licenses $39,605 $41,160 $40,061 Interest ( $ 67,563.00) $0 $0 $0 Depreciation ($ 69,348) $0 $0 $0 Pension, Profit-Sharing ($ 21,150) $0 $0 $0 Employee benefit program $1,004 $0 $0 Automobile Expenses ( $ 13,886) $0 $0 $0 Bank Service Charges $2,710 $59 $0 Cable Expenses $13,670 $14,738 $11,134 Travel Agent Commission $18,273 $0 $10,712 Franchise Fee $77,082 $97,295 $57,169 Cleaning Expenses $8,243 $6,178 $3,617
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