Leisure Real Estate Blog

Profitable Super 8 – Just 40 minutes from the KC Metro Area

Friday, February 6 2015 2:25 PM
Categorized In Real Estate

Calling all hotel buyers looking to buy a profitable Super 8 in the Midwest!  All too often we are asked to call a buyer if we pick up a listing in the metro Kansas City area.  In this case, the Super 8 in Atchison, Kansas  is located only 40 minutes north of the metro area.  Why doe we feel it is a good buy?

  • Absentee owned & employee run, so plenty of opportunity for an on-site owner to actually drive sales and connect with local businesses
  • Steady revenue over the past 4 years
  • $447,000 revenue in 2014  
  • Can be purchased for around 2.5x – a market price
  • Under performing its Comp Set
  • Plenty of cash flow to qualify for SBA Loan

Call or email us today for details.  This one is a money-maker in a town with little competition and built in demand generators!

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Brent Jaynes designated as a CoStar Power Broker

Tuesday, October 14 2014 8:29 AM
Categorized In Real Estate

Brent has been made a recipient of the 2013 CoStar Power Broker award.  The award is given to brokers who are leaders in investment property sales and in Brent’s case, it is in hotel real estate.

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Price Reduction – Super 8 in Toledo, Iowa

Tuesday, November 5 2013 9:59 AM
Categorized In Real Estate

Leisure Real Estate Advisors, LLC announces a price reduction of the Super 8 in Toledo, Iowa.  The list price has been reduced by $125,000 to $1,325,000.

This 49 unit, 2-story Super 8 represents a solid opportunity to purchase a well established property in central Iowa.  The hotel is located directly on Iowa Highway 30, which is a heavily traveled state highway.

Area demand generators include a number of companies, including Meskwaki Casino, Pioneer Hi-Bred Agriculture, Tama Paperboard and 3 assisted healthcare facilities.  Toledo is the county seat of Tama County, providing steady government business.  There also is a state juvenile home in the area.

This property would be ideal for an owner/operator, offering strong cash flow, ease of operation and a quality of life community.

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New Hotel Opportunity at the Des Moines, IA Airport

Friday, October 11 2013 10:00 AM
Categorized In Real Estate

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Leisure Real Estate Advisors, LLC announces it has been retained as the exclusive marketing agent for the 128 key Days Inn & Suites located at the Des Moines, IA Airport.

“This Days Inn & Suites, located at the Des Moines Airport, carries all of the attributes of a quality hospitality investment,” says Dave Jones, Senior Investment Advisor for Leisure Real Estate Advisors.   “That is, a strong and growing market, superior cash flow and increasing revenue.  The property also is under performing its compset.”

The hotel, formerly a part of an independent Iowa chain, became a Days Inn & Suites in December 2010 and was totally renovated in 2011.  The owners have invested over $1M in capital improvements.  The hotel features 32” LCD TV’s, microwaves and mini fridges in all guestrooms, an indoor pool, fitness room and meeting room.

Des Moines, the capital of Iowa, is a growing city with many demand generators.  Southridge Mall, Blank Park Zoo, the State Capital & Civic Center are call close by.  Also, annual events such as the Iowa State Fair, World Pork Expo & Iowa State Wrestling Championships draw a huge amount of traffic to the area.

View the Full Executive Summary

Leisure Real Estate Advisors, LLC is based in metro Kansas City, with branch offices in Lincoln, NE and Jefferson City, MO, and has a specialty concentration in the marketing and sales of hotels.  Over its 15 year existence, the company has become one of the premier brokerage firms in the country and boasts collective closing volume of over 1 billion dollars.

For more information on this investment opportunity or to discuss the investment market in general, please direct your questions to:

Dave Jones

Senior Investment Advisor

Leisure Real Estate Advisors

Email

913-499-4725

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New Hotel Opportunity in Central Iowa

Friday, October 11 2013 9:32 AM
Categorized In Real Estate

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Leisure Real Estate Advisors, LLC announces it has been retained as the exclusive marketing agent for the 49 key Super 8 located in Toledo, IA.

“Super 8 is an excellent flag for mid-market investors,” says Dave Jones, Senior Investment Advisor with Leisure Real Estate Advisors.  ”The Super 8 in Toledo represents a solid opportunity to purchase a well established property with a solid NOI in central Iowa.  The hotel is located directly on Iowa Highway 30, which is a heavily traveled state highway.”

The hotel features a total of 49 rooms, including whirlpool suites and an oversized guestroom with a full kitchen.  All of the rooms have a mini-fridge and microwave, as well as NEW digital PTAC units and beds.  The breakfast area was also remodeled in 2012.

Toledo, IA is somewhat of a well kept secret.  It features a strong business climate with a number of companies, including Meskwaki Casino, Pioneer Hi-Bred Agriculture, Tama Paperboard and 3 assisted healthcare facilities.  Toledo is the county seat of Tama County, providing steady government business.  There also is a state juvenile home in the area.

This property would be ideal for an owner/operator, offering strong cash flow, ease of operation and a quality of life community.

View the Full Executive Summary

Leisure Real Estate Advisors, LLC is based in metro Kansas City, with branch offices in Lincoln, NE and Jefferson City, MO, and has a specialty concentration in the marketing and sales of hotels.  Over its 15 year existence, the company has become one of the premier brokerage firms in the country and boasts collective closing volume of over 1 billion dollars.

For more information on this investment opportunity or to discuss the investment market in general, please direct your questions to:

Dave Jones

Senior Investment Advisor     

Leisure Real Estate Advisors    

Email                                                                                                                         

913-499-4725

 

 

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Looking Ahead to 2013!

Wednesday, January 16 2013 9:23 AM
Categorized In Real Estate

2012 was a very good year for Leisure Real Estate Advisors, with 2013 looking very positive.   One thing about hotel real estate that never seems to change………something is always happening with these assets.  Even with the economic uncertainty, within our firm the number of transactions for cash flow deals has increased while the number of bank owned listings is down.  This trend is good sign for the industry.  That is, just like housing, foreclosures affect the entire pricing structure.  As those hotel assets are purged from the system, the pricing should stabilize.  We anticipate continued improvement in the marketplace, with the emphasis on cash flow over distressed assets.

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New rates posted for the SBA 504 program

Monday, September 17 2012 8:31 AM
Categorized In Real Estate

4.28% is the most recent 20 year rate for the SBA 504 program. As most of you know, this rate is fixed for 20 years, if held to full term.

Based on the nature of these debenture loans, the published offered rate changes monthly. However, it is safe to say that the fixed nature of the rate, once established, could not be found from a traditional lender.

The 504 program gets somewhat of a bad rap, because of the detailed paperwork required for application, but in many instances, it is one of the few ways to get a lender to participate in a hotel loan. If you are considering hotel acquisitions, a 504 loan might be in your future.

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SBA opens new doors

Thursday, October 28 2010 3:45 PM
Categorized In Real Estate

Most of us in the hotel bidness have heard or read about the new SBA 504 and 7 (a) enhancements passed recently in HR 5297.   The highlights of the bill increased the maximums under the SBA 504 and 7 (a) loans to $5 million.  In the case of the 504, the $5M maximum (for hotels) could translate into a total deal size of $12M.  For example, using the 504 program, 40% of the deal would come from the SBA debenture, 40% from the primary lender and 20% from the investor.   (Currently, we are seeing most 504 lenders require 20% down for hotel deals).  In some instances, you may find a lender willing require less than 20% by using the 7(a) program, but it would depend on the lender, and would be unusual.   One very important point that has been overlooked is the fact that the increased limits for 504 will reopen the door for those investors who are at their $1.5 to $2M dollar limits.  In other words, if you now have an SBA loan and your SBA portion is at or near $2M, you now will have another $3M of eligiblity with the 504 program. 

In addition to the above, the fees for both programs have been reduced or eliminated until the end of 2010.    Many folks we talk to do not like the brain damage it takes to work with the SBA.  But in today’s lending environment, use of the SBA may be the only way to purchase a hotel.  In addition, the SBA requirements are similar to those found with a traditional loan.  Besides, if you use a CDC (Community Development Corporation) that knows what they are doing for hotels and the 504 portion, the application process is simply a matter of following the steps, just like any other loan.  Another “bang for your buck” feature is the interest rates on the 504 debenture, which are as low as I have seen them in 20 years.  Anytime one can get an interest rate, fixed for 20 years, at less than 5% APR, it creates an opportunity. 

Based on the state of the market and the new higher limits for these loans, I would be looking for opportunities to buy.   If you have seen anything different in the lending marketplace, I would love to hear about it..

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