BREAKWATER INN 1 JUNEAU, ALASKA PRESENTED BY 2 NON - ENDORSEMENT AND DISCLAIMER NOTICE Non-Endorsements 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. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. BREAKWATER INN AT JUNEAU, ALASKA Juneau, AK ACT ID ZAA0140246 3 BREAKWATER INN AT JUNEAU, ALASKA PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus & Millichap exclusively presents for sale the Breakwater Inn in Juneau, Alaska. A three-story 49 room full service hotel sits on a open harbor water view less than a mile from Juneau Downtown and one and a half miles from the Juneau Cruise Ship Terminal. Juneau is the Capital of Alaska with the government sector as the largest employer with nearly 7,000 people and total population of 36,000 thousand residents. Over a million out-of-state visitors visit annually, of which 93 percent are cruise passengers. Popular activities are visiting Mendenhall Glacier , nature hiking, kayaking, whale watching, wildlife viewing, hunting and fishing. Hotel rooms provide spectacular waterfront views with full dining and bar. All harbor view rooms have private decks and mountain view rooms have kitchenette units. The sale includes a fishing boat, snow plowing truck and a shuttle van. Also, the BDL (Beverage Dispensary- Tourism AS 04.11.400(d)) license is included in the sale which is valued at approximately $450,000, which only 11 such limited licensee is available in entire Juneau Alaska. The property has incredible potential opportunities to increase revenue as the property is under performing compared to comparable hotels in the area. Extended stay accounts for only 46 percent of occupancy and only 6.7 percent of occupancy accounts for daily room charge while local occupancy is at above 60 percent, which provides significant opportunity to increase the occupancy and increase revenue. The banquet room that is about 3,000 square feet is inactive which can be opened for extra revenue. Also, the ground level has spaces to be utilized as retail business to provide services for the Juneau Douglass High School right next door. 4 BREAKWATER INN AT JUNEAU, ALASKA EXECUTIVE SUMMARY ACTUAL VIEW FROM THE RESTAURANT LOCATION SUMMARY Breakwater Inn, is ideally located half way between Juneau International Airport and Downtown Juneau. It is the second largest city by area in the United Stage. The city is many things: a mountain town, a coastal community and the most scenic capital city in the United States. It is not only America’s “Last Frontier,” but also a natural wonder, wildlife hot spot and cultural jewel. It is rich in history, art, music and Native heritage; an outdoor enthusiast’s paradise, a shopper’s trove and a food lover’s dream - not just the state capital, but the beating heart of Southeast Alaska. Over a million people visit Juneau to experience it’s stunning, natural beauty, including glaciers, national parks and the tallest mountain in North America, Denali (formerly Mount McKinley). Juneau is the most visited city in Alaska, with visitors contributing over 25 percent of Juneau’s annual sales tax. 5 BREAKWATER INN AT JUNEAU, ALASKA Juneau, AK AREA OVERVIEW Mendenhall Glacier OVERVIEW According to U.S. News & World Report, Juneau is ranked as • #10 in Best Small Towns to Visit in the USA • #11 in Best Adventure Vacations in the USA 6 BREAKWATER INN AT JUNEAU, ALASKA Juneau, AK BEAUTY OF JUNEAU Frederick Sound OVERVIEW 7 BREAKWATER INN AT JUNEAU, ALASKA RESTAURANT & BAR 8 BREAKWATER INN AT JUNEAU, ALASKA AREA OVERVIEW Juneau, AK OVERVIEW Cruise Ship Traffic: Southeast Alaska continues to see larger ships replacing smaller vessels. There has been a gradual increase in the number of overall visitors, including during Juneau’s off-season (fall/winter), especially in its cruise visitor industry. To handle this change and the anticipated visitor growth in 2019 of 80,000 more passengers, Juneau has built two new panama docks at the Port of Juneau, which opened in 2016 and 2017 with the capacity to host four 1,000-foot vessels at a time. This past summer, Juneau welcomed the arrival of Alaska’s first mega-ship, the Norwegian Bliss. 9 BREAKWATER INN AT JUNEAU, ALASKA EXECUTIVE SUMMARY PROPERTY DETAIL VITAL DATA ROOM BREAKDOWN Name of Property Breakwater Inn Kings 29 (15with Kitchenettes) Property Address 1711 Glacier Ave, Juneau, Alaska 99801 Double Double 14 (11 with Kitchenettes) Price $2,853,800 Queen Queen 4 (1 with Kitchenette) Cap Rate 9.56% Bunk Bed with 1 (with Kitchenette) Proforma Cap Rate 17.30% Queen Master Suite 1 Owership Fee Simple Total Number of Rooms 49 (29 with Kitchenettes) Price/Room $58,240.82 Room Count 49 Average Daily Rate $53.63 Occupancy 53% (*16%) RevPAR $28.18 Price $/ SQ FT. $126.39 *16% occupancy for daily stay BREAKWATER INN ACCESSIBILITY Assessor's Parcel Number 10020-J05-0030 Highway Alaska Route 7 Franchise Independent Airport Juneau Int'l Airport - 7miles Franchise Available Quality Inn, Days Inn, Howard Johnson Juneau (Downtown) Downtown - 1 miles Lot Size (Acres) 0.52 Gross Leasable Area (SF) 22,580 Year Built 1969 Number of Buildings 1 Number of Stories 3 10 BREAKWATER INN AT JUNEAU, ALASKA HISTORICAL P&L HISTORICAL PROFIT & LOSS BREAKWATER INN - JUNEAU, ALASKA 2017 2018 Profoma Rooms 49 49 49 REVENUE Room Revenue 540,478 65.0% $508,934 65.0% $818,110 64.3% F&B Revenue (Restaurant) 291,027 35.0% $274,041 35.0% $455,000 35.7% Total $831,505 100.0% $782,975 100.0% $1,273,110 100.0% Departmental Expenses . Rooms $108,844 20.1% $98,689 12.6% $133,230 10.5% Food & Beverage $58,608 20.1% $53,140 6.8% $122,850 27.0% Total $167,452 20.1% $151,829 19.4% $204,969 16.1% Departmental Income $664,053 79.9% $631,146 80.6% $1,068,141 83.9% Undistributed Operating Expenses Administration & General $46,770 5.6% $39,687 5.1% $53,577 4.2% Marketing $11,290 1.4% $8,963 1.1% $12,100 1.0% Property Operations & Maintenance $5,600 0.7% $4,200 0.5% $5,670 0.4% Utility Costs $132,975 16.0% $122,683 15.7% $150,000 11.8% Payroll $174,870 21.0% $159,481 20.4% $310,000 24.3% Total $371,505 44.7% $335,014 42.8% $531,348 41.7% Gross Operating Profit $292,548 35.2% $296,132 37.8% $536,793 42.2% Fixed Expenses Property Taxes $12,840 1.5% $13,005 1.7% $28,000 2.2% Insurance $13,560 1.6% $10,170 1.3% $15,000 1.2% Total $26,400 3.2% $23,175 3.0% $43,000 5.5% Net Operating Income $266,148 32.0% $272,957 34.9% $493,793 38.8% 11 BREAKWATER INN AT JUNEAU, ALASKA HISTORICAL P&L 2019 Revenue Breakdown Breakwater Inn - 2018 Breakdown Breakwater Inn Room (Sold) Mth Days Room (Available) Room (Sold = Monthly + Daily) Restaurnt Monthly Guest Daily Guest Total (A+B) Day Month Day Month Revenue Day Month ADR Occu. RevPar Revenue ADR Occu. RevPar Total (A) Total (B) Jan 31 49 1,519 14 436 $ 18,900 2 61 $ 118.80 6% $ 6.69 $ 7,250 $ 52.62 33% $ 17.22 $ 26,150 $ 15,500 $ 41,650 Feb 28 49 1,372 16 443 $ 21,250 2 70 $ 118.80 8% $ 8.93 $ 8,300 $ 57.65 37% $ 21.54 $ 29,550 $ 19,800 $ 49,350 Mar 31 49 1,519 16 498 $ 21,600 2 72 $ 118.80 7% $ 8.41 $ 8,580 $ 52.91 38% $ 19.87 $ 30,180 $ 23,600 $ 53,780 Apr 30 49 1,470 18 535 $ 23,950 2 68 $ 118.80 7% $ 8.63 $ 8,075 $ 53.15 41% $ 21.79 $ 32,025 $ 21,470 $ 53,495 May 31 49 1,519 32 996 $ 43,200 3 108 $ 118.80 21% $ 24.49 $ 12,800 $ 50.72 73% $ 36.87 $ 56,000 $ 22,470 $ 78,470 Jun 30 49 1,470 33 993 $ 44,500 6 185 $ 118.80 39% $ 46.15 $ 22,000 $ 56.43 80% $ 45.24 $ 66,500 $ 29,840 $ 96,340 July 31 49 1,519 34 1,056 $ 45,800 5 166 $ 118.80 36% $ 42.59 $ 19,700 $ 53.59 80% $ 43.12 $ 65,500 $ 31,850 $ 97,350 Aug 31 49 1,519 35 1,070 $ 46,400 5 143 $ 118.80 32% $ 37.77 $ 16,950 $ 52.23 80% $ 41.71 $ 63,350 $ 30,340 $ 93,690 Sep 30 49 1,470 23 693 $ 31,050 4 131 $ 118.80 17% $ 20.08 $ 15,600 $ 56.59 56% $ 31.73 $ 46,650 $ 21,720 $ 68,370 Oct 31 49 1,519 17 529 $ 22,950 3 104 $ 118.80 10% $ 12.43 $ 12,300 $ 55.70 42% $ 23.21 $ 35,250 $ 20,980 $ 56,230 Nov 30 49 1,470 15 452 $ 20,250 2 49 $ 118.80 5% $ 5.70 $ 5,800 $ 52.01 34% $ 17.72 $ 26,050 $ 19,530 $ 45,580 Dec 31 49 1,519 16 504 $ 21,870 2 48 $ 118.80 5% $ 5.67 $ 5,750 $ 49.96 36% $ 18.18 $ 27,620 $ 21,050 $ 48,670 Total 365 49 17,885 22 8,207 $ 361,720 3 1205 $ 118.80 16% $ 18.96 $ 143,105 $ 53.63 53% $ 28.18 $ 504,825 $ 278,150 $ 782,975 Monthly Rate : $ 1,344.00 ($1,200+Tax/12%) * Occupancy = Sold Room/Total Room Daily Rate : $ 118.80 ($99+Tax/12%) * ADR = Sold Room Revenue / Sold Room Total * RevPar = Sold Room Revenue / Total Room 12 BREAKWATER INN AT JUNEAU, ALASKA Proforma Revenue Breakdown Breakwater Inn -Proforma Breakwater Inn Room (Sold) Mth Days Room (Available) Room (Combined = Monthly + Daily) Restaurnt Monthly Guest Daily Guest Total (A+B) Day Month Day Month Revenue Day Month ADR Occu.