5102 North State Line Avenue Texarkana, AR 71854 1
EXECUTIVE SUMMARY VITAL DATA YE 2017 PRO- FORMA YEAR 1 Price $2,750,000 CAP Rate 12.01% 12.86% Net Operating Income $330,387 $353,664 Down Payment 20.8% / $572,000 Net Cash Flow After Debt Service 28.72% / $164,303 32.79% / $187,579 Loan Amount $2,200,000 Total Return 35.83% / $204,947 39.90% / $228,224 Loan Type Interest Rate / Amortization Proposed New 5.75% / 25 Years Price/Room $27,778 Ownership Type Fee Simple Number of Rooms 99 Rentable Square Feet 44,912 Number of Buildings 1 Number of Stories 4 Year Built 1986 Lot Size 2.59 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES United States Dept of Army 5,121 Wadley Regional Medical Center 2,535 Cowhorn Creek Estates 2,381 Christus St Michael Hlth Sys 1,800 Walmart 989 Tenet 860 Defense Logistics Agency 750 Texarkana Arkansas School Dst 750 El Chico Restaurant 639 Collom & Carney Clinic Assn 494 Texarkana College Bookstore 400 Community Education Ctrs Inc 318 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 3,774 35,716 63,008 2016 Census Pop 3,843 36,032 62,486 2016 Estimate HH 1,657 14,834 25,230 2016 Census HH 1,682 14,985 25,028 Median HH Income $46,129 $43,773 $39,912 Per Capita Income $28,822 $25,897 $23,325 Average HH Income $64,429 $61,456 $57,036 # 2
INVESTMENT OVERVIEW Marcus & Millichap's National Hospitality Group, as an exclusive broker, is pleased to offer for sale the Baymont Inn & Suites in Texarkana, Arkansas. The Baymont Inn & Suites Texarkana is offered for sale at $2.75 million, at a price per key of $27,778, which is significantly below replacement cost. The Baymont Inn & Suites just completed extensive renovations involving nearly half a million dollars worth of capital expenditures. Giving the new investor the opportunity to take over a turnkey asset, the property is conservatively projected to perform one million dollars year one in room revenue. This property is ideal for an owner-operator with a managers suite on-site. An aggressive owner-operator should be able to minimize expenses and increase profits, yielding a potential five-year Levered IRR of 53.93 percent. Detailed historic operating documentation and third-party reports can be requested from the agent. 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, or on-site management or staff without prior approval. INVESTMENT HIGHLIGHTS 99-Room, Interior Corridor, Midscale Hotel Turnkey Asset, Just Completed Full Renovation - Minimal to No PIP Situated at the Intersection of Interstate Highway 30 Close to Texas A&M-Texarkana, the Perot Theatre, and the Wright Patman Lake Manager's Apartment On-Site 3
PROPERTY OVERVIEW The Baymont Inn & Suites in Texarkana, Arkansas is a 99-room, limited service hotel conveniently located off Interstate Highway 30. The four-story hotel has an interior corridor and was built in 1986. The hotel offers complimentary hot breakfast, free wireless high-speed Internet access, and ample car parking space for its guests. The hotel is located close to many local attractions and points of interests. Texas A&M University - Texarkana, the Perot Theatre and Wright Patman Lake are all close to the Baymont Inn & Suites. The Texarkana Regional Airport is also located just six miles away from the hotel. The city of Texarkana, Arkansas is located in Miller County. It is approximately 180 miles northeast of Dallas, Texas, and 70 miles north of Shreveport, Louisiana. It effectively functions as one-half of a city which crosses a state line, and the other half, the city of Texarkana, Texas, lies on the other side of State Line Avenue. The city, along with its Texas counterpart, forms the core of the Texarkana, Texas-Texarkana, Arkansas Metropolitan Statistical Area, encompassing all of Bowie County, Texas, and Miller County, Arkansas. Common Area Amenities Fitness Center Outdoor Pool Business Center Breakfast Area Bus/Truck/RV Parking Guest Room Amenities Flat Screen Televisions Hair Dryer Coffee/Tea Maker WiFi Available # 4
PROPERTY SUMMARY THE OFFERING Property Baymont Inn & Suites Texarkana Price $2,750,000 Property Address 5102 North State Line Avenue, Texarkana, AR SITE DESCRIPTION Number of Rooms 99 Year Built/Renovated 1986 Lot Size 2.59 acre(s) ROOM TYPES NUMBER OF ROOMS ROOM TYPE 0 Double 0 Queen 0 King 0 Suite/Kitchenette PROPOSED FINANCING FIRST TRUST DEED Loan Amount $2,200,000 Loan Type Proposed New Interest Rate 5.75% Amortization 25 Years Loan Term 25 Years Loan to Value 80% Debt Coverage Ratio 2.13 SECOND TRUST DEED Loan Type All Cash 5
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PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. FOR MORE INFROMATION CALL: Chris Gomes Senior Managing Director Investments, National Hospitality Group Office: (512) 338-7826 Mobile: (972) 824-5483 Joseph Jaques Associate, National Hospitality Group Office: (972) 755-5171 Mobile: (979) 229-7673 127