ECONO LODGE & ADDIRONDACK EFFICIENCIES ......The Econo Lodge and Adirondack Efficiencies Watertown...

ECONO LODGE &

ADDIRONDACK EFFICIENCIES

WATERTOWN

OFFERING MEMORANDUM

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe 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 NOTICEMarcus & 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.

ECONO LODGE &

ADIRONDACK EFFICIENCIES WATERTOWN

1030 ARSENAL STREET, WATERTOWN, NEW YORK 13601

JERRY SWONFirst Vice President Investments

National Hospitality GroupManhattan Office

Office 212.430.5219 Cell 908.625.6934

[email protected] NY 10401248594

NJ 0999581

DANIEL ZAGORIAAssociate


Office 212.430.5211 Cell 404.401.6006


EXCLUSIVELY LISTED BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

CAMERON PIERCEAssociate


Office 646.805.1437Cell 631.681.8779


ECONOLODGE & ADIRONDACK EFFICIENCIES

WATERTOWN

01 EXECUTIVE SUMMARYOffering Summary • Vital Data • Annualized Operating Data •

Executive Summary • Investment Overview • Summary Of Terms

TABLE OF CONTENTS

EXCLUSIVELY LISTED BY

07 PROPERTY DESCRIPTIONFeatures / Amenities • Local / Regional Map • Area Attractions

13 FINANCIAL OVERVIEWMarket Trend • RevPAR Comparison • Combined Profit & Loss Summary •

24 COMPETITIVE PROPERTY SET Competitve Properties Map • Competitve Properties

27 MARKET OVERVIEWDemographic Summary • Market Overview

ECONO LODGE &


1030 ARSENAL STREET, WATERTOWN, NEW YORK 13601

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 Z0330813

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EXECUTIVESUMMARY

ECONO LODGE &ADIRONDACK EFFICIENCIES

WATERTOWN

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INVESTMENT OVERVIEW

OFFERING SUMMARY

Purchase Price $2,500,000

Total Number of Rooms 106

Year Built 1987

Price/Room $23,810

Cap Rate 10.35%

Room Revenue Multiplier 3.43

Lot Size 5.14 Acres

Marcus & Millichap has been chosen to exclusively market for sale the Econo Lodge and Adirondack Efficiencies Watertown located at 1030 Arsenal Street, Watertown, New York 13601. The portfolio includes a total of 106 rooms in two separate interior corridor two-story all concrete block hotels. The limited-service properties are situated on approximately 5.14 acres of land including approximately 1.5 acres of vacant land available for commercial development.


Occupancy 28.1%

ADR $44.41

RevPAR $12.47

Number of Rooms 48

Number of Stories 2

ECONO LODGE WATERTOWN

Occupancy 36.7%

ADR $66.90

RevPAR $24.56

Number of Rooms 58

Number of Stories 2

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ANNUALIZED OPERATINGDATA

ANNUALIZED OPERATING DATA

INCOME COMBINED 2017 % OF GR

Room Revenue $729,558 100.0 %

Gross Revenue $729,558 100.0%

Total Expenses $470,709 64.5%

Net Operating Income $258,849 35.5%

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PROPERTY TOURSProspective 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.

INVESTMENT SUMMARYThe Econo Lodge and Adirondack Efficiencies Watertown represents the opportunity to acquire two well-maintained hotels located in a stable market. Our Pro Forma analysis assumes an investor will increase oper-ating efficiencies through cost management and modest revenue growth.

TERMS OF SALEThe Econo Lodge and Adirondack Efficiencies Watertown is offered at $2,500,000 based on a capitalization rate of 10.35 percent and a price per room that is well below replacement cost. Historic operating documentation and third party reports may be found in the online document data portal. Please contact listing agents for more information.

INTEREST OFFEREDFee simple interest in the Econo Lodge and Adirondack Efficiencies Watertown, two hotels located at 1030 Arsenal Street, Watertown, New York 13601.

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INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

► Priced Below Replacement Cost

► Excellent Access and Visibility - Located along Interstate 81

► Approximately Six Miles to Watertown International Airport

► Proximity to Kingston, Ottawa, and Syracuse Metropolitan Area

► Approximately 1.5 Acres of Vacant Land Included in Sale

► Conveniently Located to Popular Destinations: Alexandria Bay, Syracuse, Adirondack Mountains, Lake Ontario, Thousand Islands, Fort Drum, Salmon Run Mall, Jefferson Community College, Pulaski and Watertown International Airport, Downtown Watertown, New York State Zoo, Dry Hill Ski Area

PROPOSED FINANCING

FINANCING

Loan Amount $1,875,000

Loan Type Proposed New

Interest Rate 5.25%

Amortization 25 Years

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

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PROPERTY DESCRIPTION


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ECONO LODGE FEATURES AND AMENITIES

► Complimentary WiFi

► Complimentary Parking

► Laundry Facility

► Complimentary Breakfast

► Indoor Heated Pool

► Complimentary Coffee

► Picnic Area

COMMON AREA FEATURES

► Television

► Desk


► Telephone

► Daily Housekeeping

► Refrigerator

► Coffee / Tea Maker

GUEST ROOM AMENITIES

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ADIRONDACK EFFICIENCIES FEATURES AND AMENITIES



► Indoor Heated Pool

► Business Center

► Complimentary Parking

► Complimentary Breakfast

► Vending Machine

► Barbeque Facilities

► Patio

► Garden

► Laundry Facility

COMMON AREA FEATURES

► Television


► Desk

► Sofa

► Daily Housekeeping

► Kitchenette - Select

► Telephone

► Iron / Ironing Board

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MAPPING

LOCAL MAP REGIONAL MAP

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AREA ATTRACTIONSAREA ATTRACTIONS DISTANCE

Jefferson Community College 1.2 Miles

Jefferson County Historical Society 2.4 Miles

Sci-Tech Center of Northern New York 2.5 Miles

Salmon Run Mall 2.6 Miles

Thompson Park Zoo and Conservancy 3.4 Miles

Watertown International Airport 5.7 Miles

Dry Hill Ski Area 6.0 Miles

Highland Meadows Golf and Country Club 6.7 Miles

Burrville Cider Mill 6.8 Miles

Historic Sackets Harbor 9.4 Miles

Lake Ontario Eastern Basin 10.0 Miles

Fort Drum 10.7 Miles

Evans Mills Speedway 13.0 Miles

Thousand Islands International Bridge 30.0 Miles

Boldt Castle & Yacht House 32.6 Miles

COMPANY LOCAL EMPLOYEES

Samaritab Medical Center 1,250

Walmart 761

NYSDOT Region 7 750

Cape Vincent Correctional Facility 700

United States Department of Army 640

Mercy of Northen New York 563

Indian River Jr-Sr High School 550

Boces 480

Climax Manufacturing 460

New York Air Brake 445

County of Jefferson 406

MAJOR EMPLOYERS IN MARKET

Boldt Castle & Yacht HouseFort Drum Thousand Islands International Bridge

Evan Mills Speedway

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FINANCIALANALYSIS

ECONO LODGE & ADIRONDACK EFFICIENCIES

WATERTOWN

MARKET TREND - ECONO LODGE

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REVPAR COMPARISON - ECONO LODGE

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COMBINED PROFIT AND LOSS SUMMARY

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WATERTOWN

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EXECUTIVESUMMARY


WATERTOWN

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COMPETITIVE PROPERTY SET


WATERTOWN


WATERTOWN

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Hotel City, State Zip Rooms Open

Econo Lodge & Adirondack Efficiencies Watertown Watertown, NY 13601 106 1987

1 Motel 6 Calcium Calcium, NY 13616 100 1990

2 Comfort Inn & Suites Watertown Thousand Islands Watertown, NY 13601 135 1987

3 Holiday Inn Express & Suites Watertown Thousand Islands Watertown, NY 13601 115 2006

4 Fairfield Inn & Suites Watertown Thousand Islands Watertown, NY 13601 103 2012

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MARKET OVERVIEW


WATERTOWN

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DEMOGRAPHICS HIGHLIGHTS

37,821

$48,942 $128,635

POPULATION STATISTIC

INCOME STATISTIC HOUSING STATISTIC

EMPLOYMENT BY INDUSTRIES

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POPULATION 5 MILES 10 MILES 25 MILES

2022 ProjectionTotal Population

38,131 75,986 133,119

2018 EstimateTotal Population

37,821 73,024 128,630

2010 CensusTotal Population

36,348 69,755 124,362

2000 CensusTotal Population

35,707 66,792 119,259

Daytime PopulationTotal Population

48,833 72,393 115,653

HOUSEHOLDS 5 MILES 10 MILES 25 MILES

2022 ProjectionTotal Households

15,799 28,431 50,348

2018 EstimateTotal Households

15,540 27,156 48,319

Average (Mean) Household Size 2.35 2.52 2.54

2010 CensusTotal Households

14,831 25,776 46,461

2000 CensusTotal Households

14,163 23,418 42,810

HOUSING UNITS 5 MILES 10 MILES 25 MILES

Occupied Units

2022 Projection 15,799 28,431 50,348

2018 Estimate 16,810 29,816 62,984

HOUSEHOLDS BY INCOME 5 MILES 10 MILES 25 MILES

2018 Estimate

$200,000 or More 2.34% 2.02% 1.92%

$150,000 - $199,000 2.00% 2.19% 2.47%

$100,000 - $149,000 9.97% 10.58% 11.64%

$75,000 - $99,999 12.58% 13.56% 14.00%

$50,000 - $74,999 22.35% 23.25% 22.99%

$35,000 - $49,999 13.40% 14.78% 14.74%

$25,000 - $34,999 10.74% 10.92% 10.70%

$15,000 - $24,999 10.79% 9.97% 9.95%

Under - $15,000 15.85% 12.74% 11.60%

Average Household Income $61,726 $63,138 $64,574

Median Household Income $48,942 $51,582 $52,966

Per Capita Income $25,752 $24,159 $24,885

POPULATION PROFILE 5 MILES 10 MILES 25 MILES

Population 25+ by Education Level

2018 Estimate Population Age 25+ 24,610 44,017 80,882

Elementary (0-8) 1.90% 1.66% 2.15%

Some High School (9-11) 9.26% 8.26% 8.67%

High School Graduate (12) 32.33% 31.88% 34.22%

Some College (13-15) 21.55% 22.24% 20.96%

Associate Degree Only 12.10% 12.60% 12.05%

Bachelors Degree Only 13.01% 13.57% 12.39%

Graduate Degree 8.72% 8.88% 8.59%

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MARKET OVERVIEW

JEFFERSON COUNTY Jefferson County is located in the northern tier of New York State at the Junction of Lake Ontario and St.Lawrence River. The County’s location along the Canadian international border facilitates traffic between the two nations across the St.Lawrence River via the Thousand Islands Bridge.

WATERTOWNWatertown is the county seat of Jefferson County. Geographically, Watertown is located in the central part of Jefferson County. It lies 20 miles south of the Thousand Islands, 30 miles south of Ontario, and 70 miles north of Syracuse; largest nearby metropolitan area with a population of nearly two million.

Named after the many falls located on the Black River, Watertown developed early in the 19th century as a manufacturing center. From years of generating industrial wealth, in the early 20th cen-tury the city was said to have more millionaires per capita than any other city in the nation. Residents of Watertown have built a rich public and and private architectural legacy.

The city is served by Watertown International Airport. It has the longest continually operating county fair in the United States and holds the Watertown Red & Black football franchise, the oldest surviving semi-professional team in the United States.

Watertown represents an important portion of the overall visitor market in Jefferson County due to its cultural attractions, visitor amenities, and recreational opportunities available on the Black River.

Thousand Islands

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FORT DRUMLocated nine miles east of Watertown is Fort Drum, home to more than 36,900 soldiers, family members and civilian employees of the 10th Mountain Division and its supporting tenants. Fort Drum is the largest Army installation in the Northeast and occupies 107,265 acres in Jefferson County. With approximately 24,000 employees, Fort Drum is the largest single-site employer in Upstate New York. In total, the base sees almost 80,000 troops for training annually. Today, the Fort Drum population constitutes a major component of the demand for local business within the region.

Boldt Castle and Yacht House

Aerial of Watertown, New York

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JERRY SWONFirst Vice President InvestmentsNational Hospitality GroupManhattan OfficeOffice 212.430.5219 Cell [email protected] NY 10401248594 | NJ 0999581

DANIEL ZAGORIAAssociateNational Hospitality GroupManhattan OfficeOffice 212.430.5211 Cell [email protected] NY 10401272902

CAMERON PIERCEAssociateNational Hospitality GroupManhattan OfficeOffice 646.805.1437Cell [email protected] NY 10401313211

E X C L U S I V E LY L I S T E D B Y

ECONO LODGE & ADIRONDACK EFFICIENCIES WATERTOWN

ECONO LODGE & ADDIRONDACK EFFICIENCIES ......The Econo Lodge and Adirondack Efficiencies Watertown...

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