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Eureka (415) 523-0393 California the Passport Group EUREKA (415) 523-0393 www.ThePassportGroup.com CALIFORNIA THE PASSPORT GROUP 548 Market St #60420 San Francisco, CA 94104-5401 (415) 523-0393 www.ThePassportGroup.com LISTING TEAM Joe Wolosz Jeff Durham Principal Broker (415) 519-5639 (415) 706-6011 [email protected] [email protected] CONTENTS Property Overview 1 Executive Summary 3 About Fortuna 6 Lodging Market 8 Ŵḏ ḡŻůḏ njæṩŻĥłḏĉ ṩḡḏ ĥłʒnjplj Żṩĥnjł ĥł ṩḡĥṛÇnjł ž ĉḏł ṩĥŻǩŎʒʒḏpĥłǯ Financial Summary 9 N ḏlj njpŻł ĉẗ lj ʒpnjlj ṛnjẗpǽḏṛ ũ ḏ æḏǩĥḏůḏ ṩnjæḏpḏǩĥŻæǩḏ⁶ Ĭṩ ĥṛṛẗ ǯ ǯ ḏṛṩḏĉ ẅnjẗ Żł ĉ2njẗpŻĉůĥṛnjpṛ ṛḡnjẗǩĉ ǽnjł ĉẗ ǽṩŻ ǽŻpḏʒẗ ǩ¹ĥłĉḏṏḏł ĉḏł ṩ ĥłůḏṛṩĥǯŻṩĥnjł njʒṩḡḏ ṏpnjṏḏpṩẅṩnjĉḏṩḏplj ĥłḏ ṩnjẅnjẗpṛŻṩĥṛʒŻǽṩĥnjł ṩḡḏ ṛẗ ĥṩŻæĥǩĥṩẅnjʒṩḡḏ ṏpnjṏḏpṩẅʒnjpẅnjẗpł ḏḏĉṛ⁶ Ȟnjũḏůḏp¹Ťḡḏ QŻṛṛṏnjpṩ Ĝpnjẗṏ ḡŻṛ ł njṩůḏpĥžḏĉ ĥṩṛ ŻǽǽẗpŻǽẅŻł ĉ ũ ḏ lj Żȷ ḏ ł njǯ ẗ ŻpŻł ṩḏḏ¹ ũ ŻppŻł ṩẅnjppḏṏpḏṛḏł ṩŻṩĥnjł Żænjẗṩ ĥṩ⁶ ABOUT THIS PROPERTY Eureka is the largest city on the west coast PROPERTY OVERVIEW between San Francisco, California and Portland, Oregon. As of the 2010 Census the population of Humboldt County was 134,623. The County Seat is Eureka. It is located on Property Clarion Hotel by Humboldt Bay California’s far north coast 250 miles north of San Francisco. The surrounding area covers Address 2223 Fourth Street, Eureka, California the Eureka-Arcata-Fortuna Micropolitan Statistical Area and is located in Humboldt County Humboldt County, California. The primary population center is concentrated in Eureka, Arcata and Listing Price $5,800,000 Fortuna. Price Per Room $89,231 GUEST ROOM BREAKDOWN No. of Rooms 65 Guest Rooms Year Built & Additions Approximately 1992 with additions approximately in 1995 and 2001 King 18 Parcel Number 002-132-008-000 King ADA 3 Ownership Interest Fee-Simple Queen 28 Site Area 1.3223 acres Double Bedded 9 Zoning CS (Commercial Service) District Suites 7 Franchisee Choice Hotels Total 65 Three buildings: one building with three floors and interior Floors / Layout corridors; two buildings with two floors both with exterior corridors. Continental breakfast served in the lobby. Dinner and snacks Food and Beverage available during the evening hours. 1 / TheRedwood EXECUTIVE SUMMARY The Passport Group has been retained as exclusive broker to INVESTMENT HIGHLIGHTS offer the fee-simple interest in the 65 guest room Clarion Hotel by Humboldt Bay (“Hotel” or “Property”) located at 2223 Fourth Street, Eureka, California. The Hotel is � Strong Revenues and Cash Flow positioned on approximately 1.32 acres. The Hotel is located The Hotel continues to show significant signs of revenue growth, on iconic Hwy 101, visible from the north and southbound with 2019 out performing 2018. lanes. It is being offered unencumbered by management and is in good physical condition. Capital Improvements � Hotel has completed Choice Hotels PIP list within the past 12 months including a new roof. This is an opportunity to acquire a northern California, coastal, franchise hotel with small restaurant. The Hotel is a cash flowing asset. The Property is two buildings, Additional Improvements: constructed in 1992 and 2001. ▷ New Roof ▷ All furniture ▷ All carpet ▷ All paint interior and exterior ▷ All new mattress ▷ All tiles in bathrooms and entrance and breakfast and walkways ▷ All new drapes ▷ All new sinks and vanities in bathrooms ▷ All new WiFi system Excellent US 101 Location and Visibility The Hotel has excellent visibility and is located on southbound US 101. It is the first hotel coming into the densely populated Eureka market where US 101 becomes city surface streets. The hotel is visible from both the southbound and northbound lanes. Discount to Replacement Cost � The Hotel is being offered at a discount to current replacement cost. 3 / TheRedwood MURRAY FIELD AIRPORT NORTHERN AIR ST. JOSEPH HOSPITAL EUREKA REDWOOD ACRES RACEWAY VICTORIAN SEAPORT OF HISTORIC DOWNTOWN EUREKA HUMBOLDT BAY NATIONAL WILDLIFE REFUGE AVENUE OF THE GIANTS HUMBOLDT REDWOODS STATE PARK EXECUTIVE SUMMARY Humboldt Redwoods State Park Located at the southern end of Humboldt County, this is California’s largest redwood state park. It contains the largest remaining contiguous old growth coastal redwoods in the world within its 53,000 acres. With over 250 developed camp sites the park brings people from all over the world to camp, hike, swim, fish, raft, bike ride and picnic. Avenue of the Giants Surrounded by Humboldt Redwoods State Park, this world famous scenic drive is a 31 mile portion of old Highway 101. It is said to be the most outstanding display of giant trees in the California redwood belt. Humboldt Bay Wildlife Refuge Located on the Humboldt Bay, this refuge was created to protect and enhance wetland habitats for migratory water birds and is currently the home of hundreds of bird species including four endangered species. Recreational opportunities include hiking, observation, boating, hunting, fishing and wildlife education. Victorian Seaport of Historic Downtown Eureka The Victorian Seaport with its waterfront boardwalk invites visitors to see hundreds of Victorian homes and is home to the magnificent Carson Mansion which is perhaps the most spectacular Victorian in the Nation. Shelter Cove This hidden stretch of beautiful California has an interesting history. The builders constructing the Pacific Coast Highway decided it was too difficult to build the highway along a stretch of what is now called the Lost Coast. As a result, the small fishing village of Shelter Cove remained very secluded from the rest of the booming state and is now a popular reprieve for those seeking a quite vacation. DEMAND GENERATORS Redwood National and State Parks The Redwood National and State Parks are old-growth temperate rainforests located in the United States, along the coast of northern California. Carson Mansion The Carson Mansion is a large Victorian house located in Old Town, Eureka, California. Regarded as one of the highest executions of American Queen Anne Style architecture, the house is “considered the most grand Victorian home in America.” Blue Lake Casino A 20-minute drive from the hotel, this modern casino hotel is a 15- minute drive from the beach. Trinidad Memorial Lighthouse/ Trinidad Head LighthouseTrinidad Head, a large domed prominence rising to a height of 380 feet, is connected to the mainland only on its northern end, thus forming the beautiful and natural Trinidad Bay on its eastern side. On the bluffs overlooking the bay, Trinidad, the oldest town on the northern California coast, was founded on April 8, 1850. Early on, the town was a vital link between ships anchored in the bay and miners testing their luck in the Klamath, Trinity, Salmon River, and Gold Bluff Mines. As the gold rush slowed, Trinidad Bay, like most bays along the Redwood Coast, became home to multiple sawmills. To aid vessels engaged in the lumber trade, a lighthouse was proposed for the ocean-facing side of the headland in 1854. Humboldt State University Humboldt State University or Humboldt State, also occasionally referred to as Humboldt, is the northernmost campus of the 23-school California State University system, located in Arcata, Humboldt County, California, United States. College of the Redwoods - College of the Redwoods is a public two-year community college with its main campus of approximately 270 acres located on the southernmost edge of Eureka in Humboldt County, California. DEMAND GENERATORSCONTINUED Downtown Eureka / Victorian Seafront This meticulously preserved and restored district of unique shops, restaurants, galleries and museums on Humboldt Bay, is a must stop on your visit to the redwoods. The Old Town/Downtown district includes theaters, pubs, antique shops and local coffee houses. Follow this link for a Walking tour of the historic buildings in Old Town. Or view it from the seat of a horse drawn carriage. Bayshore Mall The Bayshore Mall is an indoor shopping mall located in Eureka, California owned and managed by Rouse Properties, a former division of General Growth Properties, one of the largest mall owners in the United States. Arcata-Eureka Airport Located in McKinleyville, just north, just north of the property. Commercial flights are available. Fly-Humboldt is currently working with the FAA to get an additional air carrier to accommodate the airport. The general aviation airport, Murray Field, is located steps from the hotel. Other general aviation airports are located in Dismore, Garberville, Kneeland, Samoa Field, Rohnerville and Shelter Cove. MARKET The greater market surrounding the subject property offers 45 lodging properties with 2,113 guest rooms. The Clarion Hotel by Humboldt Bay competes with a smaller set of hotels based on various factors including location, rate, quality, and brand among others. Having reviewed these attributes the Clarion Hotel by Humboldt Bay offers an equal to or higher quality experience compared to the smaller competitive set. The Eureka market is currently and historically strong. Many demand generators support the hotel and local economies making this an area less susceptible to economic downturns and attractive to investors. Metrics associated with the recent economic recession are good indicators. According to the California STR report of year-end 2008, the first year of the recession, the Eureka/Crescent City segment dipped only slightly at -0.7 from 2007 in revenue per available room (RevPAR), faring better than 11 out of the 14 segments. To note, the two that out performed the Eureka/Crescent City segment were Merced and Bakersfield who were riding the last of the construction wave but
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