Executive Summary
SOLD!!!
EXECUTIVE SUMMARY – This offering will be subject to short sale conditions.
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 benefits from the terms of a Community Investment District (CID) (2% sales tax reimbursement).
INVESTMENT CONSIDERATIONS:
- Now Priced at $5,850,000
- Offered at less than 2X total revenue (YE 2022)
- 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
- YE 2022 room revenue up 25% over YE 2021
- Now with limited food & beverage
- 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.
