BACK ON THE MARKET AT A SIGNIFICANT PRICE REDUCTION!  Now offered at only $19,500/room!

“Unique” is probably the most overused word in real estate.  However, this offering fits that description in that it offers a diverse array of income streams and points of sale, (hotel, conference services, office space and apartments).  In addition, this site is one of the gateways to downtown Topeka, and could be a re-development opportunity.   The hotel is also located in an Opportunity Zone as well as a CID district, which reimburses approximately 2% sales tax back to the hotel for qualifying improvements.  

SUBJECT TO SHORT SALE CONDITIONS


Executive Summary

EXECUTIVE SUMMARY – This offering will be subject to short sale conditions, including mutual acceptance the existing lender and owner.

This iconic hotel is being brought back to the market at a reduced price, after a hiatus due to the disruption of Covid 19.  It has been a hospitality staple for downtown Topeka for decades and is listed on the Topeka Historic Landmark record.  As before, the property, features the multiple income streams, including hotel, meetings/conventions, office space and apartments.  One recent change, however,  is the manager has limited the hotel F&B operation to breakfast only, and has outsourced the convention F&B to caterers.    The property is being now being offered at $750,000 less than 2020, and at less than $20K per key (hotel + apartments).   Upside could exist in the hotel operations with re-positioning and upgrades to the hotel rooms.   According to the county website, the site contains approximately 7.2 acres of prime land, just off I-70.  The 12 story tower and the convention facilities offer a solid structure for re-development only blocks from the State Capitol.  The hotel is located in an Opportunity Zone and a CID (2% sales tax reimbursement).

INVESTMENT CONSIDERATIONS:

  • Now Priced at $5,850,000
  • Offered at less than 2X total revenue (YE 2021)
  • Offered at $19,500 per key (hotel & apartments), with no price allocation to office/commercial space
  • A prime site, located directly off Interstate 70 in downtown Topeka
  • YTD room revenue up 25% over same period 2021
  • Minutes to the State Capitol
  • Minutes to state government offices
  • Minutes to Kansas Expo Center
  • 7.2 acres m/l (county website)
  • Opportunity Zone
  • CID district (2% sales tax reimbursement; reimbursed for qualified improvements)
  • The offering is subject to short sale conditions, including lender and owner approval

Topeka, with a county population of nearly 180,000, is known for its diverse economy related to the State Capital and the state and federal government offices.  However, it is also known for its manufacturing, university, medical, insurance, transportation, sports venues, and banking/financial sectors including quite a number of international companies.  It has historically been a strong hospitality market and the underlying business fundamentals are there to sustain it.

Notable Local Employers:

  • State of Kansas (6,000 local employees)
  • Capitol Federal Savings
  • Frito Lay Company
  • Goodyear Tire & Rubber
  • Hill’s Pet Nutrition
  • Security Benefit Life Insurance
  • Washburn University (includes Law school)
  • Evergy (formerly Westar Energy)
  • Blue Cross Blue Shield of KS
  • BNSF Railway

Key business and informational websites are:

https://www.gotopeka.com/news         Economic Development

https://www.topeka.org/                        Official City Website

https://www.visittopeka.com/              Tourism/Visitor’s Bureau

https://topekachamber.org/                  Chamber of Commerce

NOTE:  Any restaurant and/or bar photos were taken when each was open and operational.  Those venues have been closed but could be re-opened.

Property Details

Address
420 SE 6th Ave, Topeka, KS 66607
Price
$5,850,000 
Rooms
300 (hotel plus apartments) 
Price Per Key
$19,500 (hotel plus apartments) 
Property Type
Mixed used conference hotel 
Revenue
Call for CA 
Website
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Hotel Description

  • Tower is 12 floors with steel frame and glass curtain/masonry construction
  • 3 story buildings are brick, wood frame construction (north building is 4 floors)
  • 4 elevators
  • 213 hotel rooms (licensed with Ramada)
  • 86 rentals, 15 non-licensed rooms and 71 apartments (mostly monthly), with high occupancy
  • Approximately 28,000 sq ft. of rentable commercial space
  • Total land area – 7.2 acres m/l
  • Approximately 40,000 sq. ft of banquet & various meeting spaces throughout
  • 3 restaurant/lounge spaces (currently closed)
  • Indoor pool and seasonal outdoor pool
  • Leased luxury penthouse apartments (master leased) on 12th floor (square footage included above)
  • Interior corridor throughout
  • Air conditioned by 2 and 4 pipe circulating water systems, with chiller and boilers replaced in 2008.
  • Holley Museum of Military History (artifacts owned by a third party)
  • The offering is subject to short sale conditions, including lender approval

Contact a Broker

Brent Jaynes Headshot

Brent Jaynes

13000 W 87th St. Pkwy, Suite 108
Lenexa, KS 66215
Phone: 913-499-4731
Fax: 913-499-4771

Dave Jones

13000 W 87th St. Pkwy, Suite 108
Lenexa, KS 66215
Phone: 913-499-4725