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 ex- penses 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 1511 NORTH HOWE STREET, SOUTHPORT, NORTH CAROLINA 28461 WINGATE BY WYNDHAM SOUTHPORT WINGATE OFFERING SUMMARY Purchase Price $7,800,000 Property Improvement Plan ($5,000 / Room Estimate) $420,000 Total Investment $8,220,000 Down Payment $2,055,000 / 25% Total Number of Rooms 84 Occupancy 64.3% ADR $103.31 RevPAR $66.42 Franchise Parent Company Wyndham Hotels & Resorts Franchise Affiliation Wingate Year Built 2009 // EXECUTIVE SUMMARY // Number of Stories 4 Type of Ownership Fee Simple Lot Size 1.1 Acres VITAL DATA Cap Rate - Actual 10.2% Cap Rate - Total Investment 9.7% Cap Rate - Pro Forma 9.9% Room Revenue Multiplier 3.8 Room Revenue Multiplier- Pro Forma 4.0 Price/Room - Total Investment $97,857 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% EXECUTIVE SUMMARY // Total Expenses $1,255,302 61.2% $1,276,226 61.0% Net Operating Income $794,643 38.8% $814,923 39.0% WINGATE BY WYNDHAM SOUTHPORT WINGATE I 2 WINGATE BY WYNDHAM SOUTHPORT WINGATE WINGATE BY WYNDHAM SOUTHPORT HOTEL AMENITIES WINGATE BY WYNDHAM SOUTHPORT HOTEL AMENITIES INVESTMENT OVERVIEW Marcus & Millichap has been chosen to exclusively market for sale the Wingate by Wydham Southport, a four-story 84-room hotel located just WINGATE BY WYNDHAM SOUTHPORT WINGATE off of Highway 87, which stretches across North Carolina and ends in Southern Virginia. The hotel is located approximately 30 miles from Wilmington International Airport. Amenities include: complimentary WiFi, fitness center, laundry facility, business center, gift shop, outdoor pool, hot tub, and meeting rooms. Guest rooms feature a television, desk, iron and ironing board, daily housekeeping, refrigerator, microwave, coffee maker, whirlpool, hairdryer, and telephone. FRANCHISE Wyndham Hotels & Resorts is the world’s largest and most diverse hotel company with over 7,800 properties and 678,000 rooms in 72 countries. With highly recognizable brands and hotel choices in every category from upscale to economy, Wyndham offers many lodging choices around the world. Wyndham Rewards has more participating properties than any other // EXECUTIVE SUMMARY // hotel loyalty program in the world, and has 40 million loyal members across the globe. By combining exciting, award-winning promotions throughout the year with industry-leading innovation and member friendly benefits, Wyndham Rewards is positioned to continue driving more guests to its 7,000+ participating hotels worldwide. INVESTMENT SUMMARY The Wingate by Wyndham Southport represents the opportunity to acquire a well-maintained hotel located in a stable market. Our Pro Forma analysis assumes an investor will increase operating efficiencies through cost man- agement and modest revenue growth. INTEREST OFFERED Fee simple interest in the Wingate by Wyndham Southport, an 84-room hotel located at 1511 North Howe Street, Southport, North Carolina 28461. 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. EXECUTIVE SUMMARY // 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 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 DESCRIPTION PROPERTY // WINGATE BY WYNDHAM SOUTHPORT