This 208 room, eight story, full service hotel is one of only two existing hotels currently operating in the heart of this downtown Southern Capital City. The Hotel has operated continuously since 1929. A New Convention Center is scheduled to open in downtown in the Spring of 2009 - where are all of these new visitors going to stay - at the other hotel- The expected new owner has an agreement with the current owner to purchase the hotel and intends to be the new majority owner. He is seeking to sell 9 blocks of 5% interest in the hotel at a purchase price of $220,000 each. The purchase price equates to 78 cents on the appraised "as is" dollar. The "bank ordered' March 2008 "as if" appraisal - when stabalized at a 45% occupancy rate - is $8,000,000. The bank holding the mortgage has endorsed the expected new owner's effort to purchase the hotel and so has the bankruptcy judge. Time is of the essence. The expected new owner will personally guarantee a $3,800,000 personal bank note but the judge has ruled that by August 11, 2008 he must raise a minimum of $800,000 for critical repairs, renovations, and operating capital (half the hotel's a/c system is inoperable and the current occupancy rate is only 20% - The Appraisers say the hotel will be stabilized at 45% occupancy - $80 average daily rate) and return a 8.5% Capitalization Rate. The 128,886 sq. ft. hotel and the additional 71,148 sq. ft. parking garage's real property value (at 45% occupancy) is $7,070,000 ($55 per heated & cooled sq. ft.) according to the Appraisers. A draft copy of the March 2008 "bank ordered" appraisal is available as is an interview with the expected new owner.
This property is off market, which means it's not currently listed for sale or rent on Zillow. This may be different from what's available on other websites or public sources.
