Post on 11-Feb-2021
OFFERING
MEMORANDUM
Presented by:
BEST WESTERN PLUS TICONDEROGA INN & SUITESTICONDEROGA, NEW YORK
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EXCLUSIVELY LISTED BY:
OFFICES THROUGHOUT THE U.S AND CANADAwww.marcusmillichap.com
JERRY SWONNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5219Mobile: (908) 625-6934jerry.swon@marcusmillichap.com License: NY 10401248594,NJ 0999581
DANIEL ZAGORIANational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5211Mobile: (404) 401-6006daniel.zagoria@marcusmillichap.com License: NY 10401272902
TIM MCCAFFREYNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5197Mobile: (516) 510-3075tim.mccaffrey@marcusmillichap.com License: NY 10401278221
The information contained in the following offering memorandum 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 offering memorandum 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 substances, 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.
CONFIDENTIALITY AND DISCLAIMER
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any com-mercial 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
best western plus ticonderoga inn & suites
TABLE OF CONTENTS
EXECUTIVE SUMMARYExecutive Summary 2 Investment Overview 3Summary of Terms 4
PROPERTY DESCRIPTIONFeatures and Amenities 6Local / Regional Map 7Area Attractions 8-9
FINANCIAL OVERVIEW Market Trend 12
Profit and Loss Summary 14Five-Year Cash Flow Pro Forma 15Five-Year IRR 16
COMPETITIVE PROPERTY SET
Competitve Properties 18
MARKET OVERVIEWMarket Overview 20Demographic Summary 21
SummaryE X E C U T I V E S U M M A R Y
EXECUTIVE SUMMARY
2
best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
260 BURGOYNE ROAD, TICONDEROGA, NEW YORK 12883W
ANNUALIZED OPERATING DATA
INCOME 2016 % OF GR PRO FORMA % OF GR
Room Revenue $1,578,210 78.0% $1,609,932 78.0%
Other Revenue $444,522 22.0% $453,457 22.0%
Gross Revenue $2,022,732 100.0% $2,063,389 100.0%
Total Expenses $1,500,416 74.2% $1,562,541 75.7%
Net Operating Income $522,316 25.8% $500,848 24.3%
OFFERING SUMMARY
Proposed Price $4,900,000
Down Payment $1,225,000 / 25%
Total Number of Rooms 54
Occupancy 55.5%
ADR $144.32
RevPAR $80.07
Franchise Parent Company Best Western Hotels & Resorts
Franchise Affiliation Best Western Plus Inn & Suites
Year Built 2008
Number of Stories 2
Type of Ownership Fee Simple
VITAL DATA
Cap Rate 10.7%
CAP Rate - Pro Forma 10.2%
Room Revenue Multiplier 3.1
Room Revenue Multiplier- Pro Forma 3.0
5 - Year IRR 32.2%
Price/Room $90,741
PHOTO
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EXECUTIVE SUMMARY best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Marcus & Millichap has been chosen to exclusively market for sale the Best Western Plus Ticonderoga Inn & Suites, a two-story 54-room hotel located less than two miles from historic Fort Ticonderoga The hotel is located approximately 53 miles from Burlington International Airport Amenities include: complimentary WiFi, business center, cocktail lounge, coffee shop, executive floor, fitness center, pool, and meeting rooms Guest rooms offer a 32-inch flat screen television, microwave, desk, coffee and teamaker, hair dryer, iron and ironing board Select rooms feature a mountain view
FranchiseBest Western Hotels & Resorts is a leader in hospitality with a global network of over 4,100 hotels in over 100 countries and territories In 2014 and 2015 Business Travel News named Best Western Plus hotels the Number 1 Upper Midprice Hotel Brand
More than 26 million travelers are members of the brand's award-winning loyalty program Best Western Rewards®; named one of the top three hotel loyalty programs by U S News & World Report for three consecutive years AAA has recognized Best Western as Partner of the Year for seven years in a row
Investment Overview
Investment SummaryThe Best Western Plus Ticonderoga 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 management and modest revenue growth
Investment Highlights Located Approximately 53 Miles from Burlington International Airport
and 79 Miles from Albany International Airport
Proximity to Area Attractions - Fort Ticonderoga, Otter Creek, Middlebury College, Strand Theater, Mount Marcy, Castleton University, Shelving Rock Falls, Paramount Theater, Norman Rockwell Museum, Rutland Regional Medical Center
EXECUTIVE SUMMARY
4
best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Interest Offered
Fee simple interest in Best Western Plus Ticonderoga Inn & Suites, a 54-room hotel, located at 260 Burgoyne Road, Ticonderoga, New York 12883
Summary of Terms
Proposed Financing
FINANCING
Loan Amount $3,675,000
Loan Type Proposed New
Interest Rate 5.50%
Amortization 25 years
Loan information is time sensitive and subject to change Contact your local Marcus & Millichap Capital Corporation representative
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
Terms of the Sale
The Best Western Plus Ticonderoga Inn & Suites is offered at $4,900,000 based on a capitalization rate of 10 7 percent Historic operating documentation and third party reports may be found in the online document data portal
DescriptionP R O P E R T Y D E S C R I P T I O N
PROPERTY DESCRIPTION best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Features and Amenities
COMMON AREA FEATURES
ROOM AMENITIES
BEST WESTERN PLUS TICONDEROGA INN & SUITES260 Burgoyne Road Ticonderoga, New York 12883
Fitness Center
Complimentary WiFi
Banquet Rooms
On-site Restaurant
Complimentary Breakfast
Cocktail Lounge / Burgoyne Grill
Indoor Heated Pool
Hot Tub
Fitness Center
Laundry Facility
Business Center
Conference Space
Wedding Services
Four Meeting Rooms
Elevator
Complimentary Parking
32-Inch Flat Screen Television
Premium Cable Channels
Desk / Work Area
Hair Dryer
Iron / Ironing Board
Coffee / Tea Maker
Complimentary WiFi
Mini-bar
Telephone
Refrigerator
Microwave
Alarm Clock
Telephone
Radio
Room Service
PROPERTY DESCRIPTION
7
best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Local Map Regional Map
PROPERTY DESCRIPTION best western plus ticonderoga inn & suites
8 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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Area AttractionsAREA ATTRACTIONS DISTANCE
LaChute River Walk Trail 0.7 Mile
Star Trek Original Series Set Tour 0.7 Mile
Ticonderoga Heritage Museum & Visitor Center 0.9 Mile
Ticonderoga Historical Society 1.3 Miles
Ticonderoga Station 1.9 Miles
Corn Maze 2.4 Miles
Ticonderoga Country Club 3.0 Miles
Fort Ticonderoga 3.6 Miles
Gunnison Lakeshore Orchards 8.3 Miles
Crown Point State Historic Site 13.8 Miles
Otter Creek 14.8 Miles
Middlebury College 16.3 Miles
Strand Theater 16.7 Miles
Mount Marcy 17.6 Miles
Castleton University 21.2 Miles
Shelving Rock Falls 24.2 Miles
Paramount Theater 28.8 Miles
Norman Rockwell Museum 28.2 Miles
Rutland Regional Medical Center 29.5 Miles
MAJOR EMPLOYERS IN MARKET
COMPANY LOCAL EMPLOYEES
International Paper 650
Walmart 300
Inter-Lakes Health Inc. 260
Moses-Ludington Hospital 170
Lowes 158
Fort Ticonderoga Museum 84
Ticonderoga Elementary School 65
Moses-Ludington Nursing Home Inc. 60
McDonalds 59
Sentinel Pine Orchards Inc. 55
Ticonderoga High School 55
Ticonderoga Middle School 55
Otter Creek
LaChute River Walk Trail
PROPERTY DESCRIPTION
9
best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Area Attractions
Star Trek Original Series Set Tour Castleton University
Gunnison Lakeshore OrchardsMount Marcy
AnalysisF I N A N C I A L A N A LY S I S
best western plus ticonderoga inn & suites
12
FINANCIAL ANALYSIS
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Market Trend
13
best western plus ticonderoga inn & suitesFINANCIAL ANALYSIS
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
RevPAR Comparison
best western plus ticonderoga inn & suites
14
FINANCIAL ANALYSIS
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Profit and Loss Summary
15
best western plus ticonderoga inn & suitesFINANCIAL ANALYSIS
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
5-Year Cash Flow Pro Forma
best western plus ticonderoga inn & suites
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FINANCIAL ANALYSIS
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
5-Year IRR
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COMPETITIVE PROPERTY SET
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Competitive Properties
2
Hotel City, State Zip Built Rooms
*Best Western Plus Ticonderoga Inn & Suites
Ticonderoga, NY 12883 2008 54
1 Quality Inn On Lake Placid Lake Placid, NY 12946 1976 89
2 Super 8 Ticonderoga Ticonderoga, NY 12883 1990 39
3 Courtyard Middlebury Middlebury, VT 05753 2003 88
4 Hampton Inn Suites Lake George Lake George, NY 12845 2006 93
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OverviewM A R K E T O V E R V I E W
MARKET OVERVIEW best western plus ticonderoga inn & suites
20 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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
Demographic Summary
POPULATION 1 MILE 3 MILES 5 MILES
2000 Population 1,986 4,117 5,291
2010 Population 1,958 4,024 5,195
2014 Population 1,906 3,926 5,084
2019 Population 1,908 3,973 5,157
INCOME
$0-$14,999 10 3% 10 8% 10 8%
$15,000-$24,999 22 5% 19 4% 17 0%
$25,000-$34,999 14 8% 14 1% 14 0%
$35,000-$49,000 14 8% 15 0% 14 9%
$50,000-$74,000 17 6% 19 4% 21 2%
$75,000-$99,000 9 2% 8 0% 8 4%
$100,000-$124,999 5 5% 6 7% 7 1%
$125,000-$149,000 2 9% 3 8% 3 5%
$150,000-$199,000 0 5% 1 1% 1 4%
$200,000-$249,000 0 7% 0 6% 0 6%
$250,000 + 1 4% 1 2% 1 2%
2014 Median Household Income $36,931 $40,175 $43,565
2014 Per Capita Income $21,626 $22,168 $24,583$76,072 $62,627 $55,957
2014 Average Household Income $55,325 $57,275 $59,026
HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2000 Households 739 1,500 2,065
2010 Households 754 1,547 2,151
2014 Households 729 1,502 2,097
2019 Households 733 1,530 2,149
2014 Average Household Size 2 43 2 38 2 38
2000 Owner Occupied Housing Units 59 94% 56 52% 56 81%
2000 Renter Occupied Housing Units 26 01% 24 31% 21 40%
2000 Vacant 14 05% 19 17% 21 78%
2014 Owner Occupied Housing Units 70 09% 71 41% 73 82%
2014 Renter Occupied Housing Units 29 91% 28 59% 26 18%
2014 Vacant 19 06% 26 57% 29 25%
2019 Owner Occupied Housing Units 70 12% 71 56% 73 98%
2019 Renter Occupied Housing Units 29 88% 28 44% 26 02%
2019 Vacant 19 86% 27 86% 30 55%
MARKET OVERVIEW
21
best western plus ticonderoga inn & suites
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, assumptions 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, Inc. © 2017 Marcus & Millichap ACT ID #Y0330658
PopulationIn 2014, the population in your selected geography is 5,083 The population has changed by -3 92% since 2000 It is estimated that the population in your area will be 5,157 five years from now, which represents a change of 1 44% from the current year The current population is 49 50% male and 50 49% female The median age of the population in your area is 45 1, compare this to the Entire US average which is 37 3 The population density in your area is 64 57 people per square mile
Households
There are currently 2,097 households in your selected geography The number of house-holds has changed by 1 57% since 2000 It is estimated that the number of households in your area will be 2,149 five years from now, which represents a change of 2 49% from the current year The average household size in your area is 2 38 persons
Income
In 2014, the median household income for your selected geography is $43,564, compare this to the Entire US average which is currently $51,972 The median household income for your area has changed by 26 23% since 2000 It is estimated that the median household income in your area will be $50,572 five years from now, which represents a change of 16 08% from the current year
The current year per capita income in your area is $24,583, compare this to the Entire US average, which is $28,599 The current year average household income in your area is $59,025, compare this to the Entire US average which is $74,533
Demographic Summary
Race & EthnicityThe current year racial makeup of your selected area is as follows: 96 70% White, 0 45% Black, 0 01% Native American and 1 09% Asian/Pacific Islander Compare these to Entire US averages which are: 71 60% White, 12 70% Black, 0 18% Native American and 5 02% Asian/Pacific Islander
People of Hispanic origin are counted independently of race People of Hispanic origin make up 1 09% of the current year population in your selected area Compare this to the Entire US average of 17 13%
Housing
In 2000, there were 1,499 owner occupied housing units in your area and there were 564 renter occupied housing units in your area The median rent at the time was $399
Employment
In 2014, there are 2,237 employees in your selected area, this is also known as the daytime population The 2000 Census revealed that 46 16% of employees are employed in white-collar occupations in this geography, and 53 87% are employed in blue-collar occupations In 2014, unemployment in this area is 10 28% In 2000, the average time traveled to work was 17 9 minutes
Shelving Rock Falls
excl
usiv
ely
liste
d by
EXCLUSIVELY LISTED BY:
OFFICES THROUGHOUT THE U.S AND CANADAwww.marcusmillichap.com
JERRY SWONNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5219Mobile: (908) 625-6934jerry.swon@marcusmillichap.com License: NY 10401248594,NJ 0999581
DANIEL ZAGORIANational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5211Mobile: (404) 401-6006daniel.zagoria@marcusmillichap.com License: NY 10401272902
TIM MCCAFFREYNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5197Mobile: (516) 510-3075tim.mccaffrey@marcusmillichap.com License: NY 10401278221