Wingate by Wyndham Southport

WINGATE BY WYNDHAM SOUTHPORT

OFFERING MEMORANDUM NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substanc- es, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. WINGATE BY WYNDHAM SOUTHPORT 1511 NORTH HOWE STREET, SOUTHPORT, NORTH CAROLINA 28461

EXCLUSIVELY LISTED BY

JERRY SWON BRIAN WHELAN PRASHANT MERCHANT First Vice President Investments Associate Associate National Hospitality Group National Hospitality Group National Hospitality Group Manhattan Office Manhattan Office Richmond Office Office 212.430.5219 Office 646.805.1441 Office 804.205.5008 Cell 908.625.6934 Cell 201.966.5918 Cell 757.589.6954 [email protected] [email protected] [email protected] License NY 10401248594 License NY 10401277435 License VA 0225226862 NJ 0999581 NJ 1644475

OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM WINGATE BY WYNDHAM SOUTHPORT TABLE OF CONTENTS

01 EXECUTIVE SUMMARY 30 COMPETITIVE PROPERTY SET Offering Summary • Vital Data • Annualized Operating Data • Competitve Properties Map • Competitve Properties Executive Summary • Investment Overview • Summary Of Terms

09 PROPERTY DESCRIPTION 33 MARKET OVERVIEW Features / Amenities • Local / Regional Map • Area Attractions Demographic Summary • Market Overview

15 FINANCIAL OVERVIEW Market Trend • RevPAR Comparison • Profit & Loss Summary • Five-Year Cash Flow Pro Forma • STR Report

EXCLUSIVELY LISTED BY This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0330473 EXECUTIVE SUMMARY

WINGATE BY WYNDHAM SOUTHPORT WINGATE BY WYNDHAM SOUTHPORT // EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE

G 4 84 3.8 4.0 9.7% 9.9% 2009 10.2% 64.3% $66.42 $97,857 Wingate $103.31 1.1 Acres $420,000 Fee Simple Fee $8,220,000 $7,800,000 $2,055,000 / 25% Wyndham Hotels & Resorts Room Revenue Multiplier Pro Forma Room Revenue Multiplier- Investment Total Price/Room - VITAL DATA VITAL Actual Cap Rate - Investment Total Cap Rate - Cap Rate Forma - Pro Number of Stories of Ownership Type Lot Size RevPAR Company Parent Franchise Affiliation Franchise Built Year Down Payment of Rooms Number Total Occupancy ADR OFFERING SUMMARY Purchase Price Plan ($5,000 / Room Estimate)Property Improvement Investment Total 1511 NORTH1511 STREET, HOWE NORTH 28461 CAROLINA SOUTHPORT,

WINGATE BY WYNDHAM SOUTHPORT // EXECUTIVE SUMMARY 1 ANNUALIZED OPERATING DATA

ANNUALIZED OPERATING DATA

INCOME 2017 % OF GR PRO FORMA % OF GR

Room Revenue $2,036,522 99.3% $2,077,456 99.3% Other Revenue $13,423 0.7% $13,692 0.7% Gross Revenue $2,049,945 100.0% $2,091,149 100.0% Total Expenses $1,255,302 61.2% $1,276,226 61.0% Net Operating Income $794,643 38.8% $814,923 39.0% // EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE

I 2 WINGATE BY WYNDHAM SOUTHPORT

WINGATE BY WYNDHAM SOUTHPORT

HOTEL AMENITIES WINGATE BY WYNDHAM SOUTHPORT

HOTEL AMENITIES INTEREST OFFERED hotel Fee simple interest in the Wingate by Wyndham Southport, an 84-room located at 1511 North Howe Street, Southport, North Carolina 28461. INVESTMENT SUMMARY represents the opportunity to acquire The Wingate by Wyndham Southport in a stable market. Our Pro Forma analysis a well-maintained hotel located operating efficiencies through cost man- assumes an investor will increase agement and modest revenue growth. FRANCHISE largest and most diverse hotel world’s Wyndham Hotels & Resorts is the and 678,000 rooms in 72 countries. company with over 7,800 properties and hotel choices in every category from With highly recognizable brands around the Wyndham offers many lodging choices upscale to economy, participating properties than any other world. Wyndham Rewards has more and has 40 million loyal members across hotel loyalty program in the world, award-winning promotions throughout the globe. By combining exciting, and member friendly benefits, the year with industry-leading innovation to continue driving more guests to its Wyndham Rewards is positioned 7,000+ participating hotels worldwide. INVESTMENT OVERVIEWINVESTMENT for sale the exclusively market been chosen to & Millichap has Marcus just hotel located 84-room a four-story by Wydham Southport, Wingate Carolina and ends in which stretches across North off of Highway 87, 30 miles from The hotel is located approximately Southern Virginia. WiFi, complimentary Airport. Amenities include: Wilmington International shop, outdoor pool, gift business center, laundry facility, fitness center, a television, desk, iron rooms. Guest rooms feature hot tub, and meeting coffee microwave, daily housekeeping, refrigerator, and ironing board, and telephone. hairdryer, whirlpool, maker,

WINGATE BY WYNDHAM SOUTHPORT // EXECUTIVE SUMMARY 5 INVESTMENT HIGHLIGHTS

►► 2009 Masonry Construction

►► Offered Below Replacement Costs

►► Up-Branding Opportunities

►► Minimal PIP Required for 15-Year Franchise with Wyndham

►► Coastal North Carolina Location: Attractive Coastal/ Tourist Destination, One Mile from Beach and Waterway, 30 Miles from Wilmington International Airport

TERMS OF SALE The Wingate By Wyndham Southport is offered at $7,800,000 based on a capitalization rate of 10.2 percent. Historic operating documentation and third party reports may be found in the online document data portal.

PROPERTY TOURS Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without prior approval.

PROPOSED FINANCING FINANCING Loan Amount $6,165,000 Loan Type Proposed New Interest Rate 5.50%

Amortization 25 Years EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE

Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative.

I 6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0330473 PROPERTY DESCRIPTION

WINGATE BY WYNDHAM SOUTHPORT // PROPERTY DESCRIPTION PROPERTY // BY WYNDHAM SOUTHPORT WINGATE

8 AND AND Spa Tub Conference Space Complimentary Newspaper Complimentary Breakfast Meeting Rooms Gift Shop Laundry Facility Outdoor Pool Fitness Center Complimentary WiFi Complimentary Parking Business Center Elevators ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► ► AMENITIES FEATURES FEATURES COMMON AREA FEATURES COMMON AREA

BEST WESTERNWINGATE BYREGENCY WYNDHAM HOUSE SOUTHPORT HOTEL // PROPERTY// PROPERTY DESCRIPTION DESCRIPTIION 9 GUEST ROOM AMENITIES

►► Complimentary WiFi ►► Iron / Ironing Board

►► Flat Screen Television ►► Hair Dryer

►► Premium Cable Channels ►► Desk // PROPERTY DESCRIPTION PROPERTY // BY WYNDHAM SOUTHPORT WINGATE ►► Coffee / Tea Maker ►► Telephone

►► Refrigerator ►► Daily Housekeeping

10 REGIONAL MAP MAPPING LOCAL MAP

BEST WESTERNWINGATE BYREGENCY WYNDHAM HOUSE SOUTHPORT HOTEL // PROPERTY// PROPERTY DESCRIPTION DESCRIPTIION 11 AREA ATTRACTIONS DISTANCE AREA ATTRACTIONS Franklin Square Gallery 1.2 Miles John Cabot University 1.2 Miles MAJOR EMPLOYERS IN MARKET North Carolina Maritime Museum at Southport 1.4 Miles COMPANY LOCAL EMPLOYEES Southport Marina 1.7 Miles Liberty Homecare Group LLC 3,500 Oak Island Golf Club 6.0 Miles New Hanover Regional Medical Center 2,975 Bald Head Island Lighthouse 8.9 Miles Walmart 1,760 Oak Island Lighthouse 7.9 Miles University of North Carolina at Wilmington 1,643 Ocean Crest Pier 12.0 Miles Verizon Wireless 1,414 Brunswick Town Historic District 13.3 Miles Gilford Mills Inc. 1,100 St. Johns Museum of Art 18.1 Miles City Hall Mayors Office 980 Wilmington Treatment Center 18.6 Miles County of Brunswick 659 University of North Carolina Wilmington 19.4 Miles Lowes 600 New Hanover Regional Medical 19.4 Miles Pharmaceutical Product Development 600 Airlie Gardens 22.2 Miles Belk 553 Battleship North Carolina 26.6 Miles

University of North Carolina Wilmington Battleship North Carolina Bald Head Island Lighthouse // PROPERTY DESCRIPTION PROPERTY // BY WYNDHAM SOUTHPORT WINGATE

12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0330473 FINANCIAL ANALYSIS

WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

14 MARKET TREND WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

15 REVPAR COMPARISON // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

16 PROFIT AND LOSS SUMMARY WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

17 5-YEAR CASH FLOW PRO FORMA // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

18 5-YEAR IRR WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

19 STR REPORT // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

20 STR REPORT WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

21 STR REPORT // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

22 STR REPORT WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

23 STR REPORT // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

24 STR REPORT WINGATE BY WYNDHAM SOUTHPORT // FINANCIAL ANALYSIS

25 STR REPORT // FINANCIAL ANALYSIS // BY WYNDHAM SOUTHPORT WINGATE

26 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0330473 COMPETITIVEEXECUTIVE PROPERTYSUMMARY SET

WINGATE BY WYNDHAM SOUTHPORT WINGATE BY WYNDHAM SOUTHPORT // EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE // COMPETITIVE PROPERTY SET COMPETITIVE PROPERTY // BY WYNDHAM SOUTHPORT WINGATE

28 WINGATE BY WYNDHAM SOUTHPORT COMPETITIVE PROPERTY SET

1 4

2 5

Hotel City, State Zip Rooms Open

Wingate By Wyndham Southport Southport, NC 28461 84 2009 3 1 Americas Best Value Inn Wilmington Wilmington, NC 28403 113 1974 Suburban Extended Stay Hotel of 2 Wilmington Wilmington, NC 28403 107 1998 3 Hampton Inn Southport Southport, NC 28461 80 2000 // EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE Comfort Suites Southport Southport, NC 28461 70 2002 4 SET COMPETITIVE PROPERTY // BY WYNDHAM SOUTHPORT WINGATE Holiday Inn Express & Suites Southport 5 Oak Island Bolivia, NC 28422 93 2014

I 30 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as- sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0330473 MARKET OVERVIEW WINGATE BY WYNDHAM SOUTHPORT // MARKET OVERVIEW // BY WYNDHAM SOUTHPORT WINGATE

32 HOUSING STATISTIC $267,386 POPULATION STATISTIC POPULATION 12,913 INCOME STATISTIC $51,308 EMPLOYMENT BY OCCUPATIONS EMPLOYMENT DEMOGRAPHICS HIGHLIGHTS DEMOGRAPHICS

WINGATEWINGATEWINGATE BY WYNDHAM BYBY WYNDHAMWYNDHAM SOUTHPORT SOUTHPORTSOUTHPORT // COMPETITIVE //// EXECUTIVE MARKET PROPERTY OVERVIEW SUMMARY SET 333333 POPULATION 5 MILES 10 MILES 25 MILES HOUSEHOLDS BY INCOME 5 MILES 10 MILES 25 MILES

2022 Projection 14,790 37,633 300,110 2018 Estimate Total Population $200,000 or More 4.53% 4.11% 3.91% 2018 Estimate 12,913 33,194 273,455 Total Population $150,000 - $199,000 4.37% 4.46% 3.64% 2010 Census 11,135 28,319 240,341 Total Population $100,000 - $149,000 10.98% 11.22% 11.44% 2000 Census $75,000 - $99,999 11.93% 12.25% 10.73% 7,380 20,462 185,873 Total Population $50,000 - $74,999 19.36% 20.30% 18.87% Daytime Populations 17,953 33,713 303,024 Total Population $35,000 - $49,999 13.97% 15.28% 13.98%

$25,000 - $34,999 9.32% 9.79% 11.20% HOUSEHOLDS 5 MILES 10 MILES 25 MILES $15,000 - $24,999 10.28% 10.20% 11.56% 2022 Projection 7,258 17,234 130,675 Total Households Under - $15,000 15.25% 12.40% 14.68%

2018 Estimate Average Household Income $74,516 $74,119 $69,866 6,264 15,058 117,424 Total Households Median Household Income $51,308 $52,610 $48,266 Average (Mean) Household Size 2.10 2.19 2.27 Per Capita Income $36,362 $33,723 $30,304 2010 Census 5,358 12,799 103,257 Total Households 2000 Census POPULATION PROFILE 5 MILES 10 MILES 25 MILES 3,430 9,245 79,096 Total Households Population 25+ by Education Level HOUSING UNITS 5 MILES 10 MILES 25 MILES 2016 Estimate Population Age 25+ 10,759 26,970 192,631 Occupied Units Elementary (0-8) 1.50% 1.34% 2.46% 2021 Projection 7,258 17,234 130,675 Some High School (9-11) 6.92% 5.93% 6.54% 2018 Estimate 10,740 27,397 153,936 High School Graduate (12) 24.11% 25.87% 24.67%

Some College (13-15) 23.17% 23.49% 22.18%

Associate Degree Only 7.98% 8.35% 10.00%

Bachelors Degree Only 22.22% 21.78% 22.18%

Graduate Degree 12.71% 12.50% 11.15% // MARKET OVERVIEW // BY WYNDHAM SOUTHPORT WINGATE // EXECUTIVE SUMMARY // BY WYNDHAM SOUTHPORT WINGATE // COMPETITIVE PROPERTY SET COMPETITIVE PROPERTY // BY WYNDHAM SOUTHPORT WINGATE

I 34 WINGATE BY WYNDHAM SOUTHPORT

EXCLUSIVELY LISTED BY JERRY SWON BRIAN WHELAN PRASHANT MERCHANT First Vice President Investments Associate Associate National Hospitality Group National Hospitality Group National Hospitality Group Manhattan Office Manhattan Office Richmond Office Office 212.430.5219 Office 646.805.1441 Office 804.205.5008 Cell 908.625.6934 Cell 201.966.5918 Cell 757.589.6954 [email protected] [email protected] [email protected] License NY 10401248594 | NJ 0999581 License NY 10401277435 | NJ 1644475 License VA 0225226862