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SUPER 8 MOTEL TUCSON EAST

Exclusive Listing

1990 South Craycroft Road, Tucson, AZ 85711

newgenadv.com

Dinesh Dan Rama Jigar "Jay" DesaiT 602.648.2715C 602.478.9636

T 602.648.2700C 520.664.4091

[email protected] [email protected]

SUPER 8 MOTEL TUCSON EAST1990 South Craycroft Road, Tucson, AZ 85711

Table of Contents

CONTENTS

CONFIDENTIALITY & DISCLAIMER

P R O P E R T Y I N F O R M A T I O N 3

F I N A N C I A L A N A L Y S I S 6

L O C A T I O N I N F O R M A T I O N 1 0

P R O P E R T Y I M P R E S S I O N S 1 3

A D V I S O R B I O S 1 6

All materials and information received or derived from NewGen Advisory its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.

Neither NewGen Advisory its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source,whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence todetermine these and other matters of significance to such party. NewGen Advisory will not investigate or verify any such matters or conductdue diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. NewGen Advisory makes no warranties and/or representations regarding the veracity, completeness, or relevance of anyfinancial data or assumptions. NewGen Advisory does not serve as a financial advisor to any party regarding any proposed transaction. All dataand assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified publicaccountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition ofthe property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriateengineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by NewGen Advisoryin compliance with all applicable fair housing and equal opportunity laws.

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PROPERTYINFORMATION

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OFFERING SUMMARYSale Price: $1,975,000

Number Of Rooms 40

NOI: $147,303

Lot Size: 0.63 Acres

Year Built: 1970

Building Size: 13,771

Zoning: 0510 (Motel)

Price / Room: $49,375

The Super 8 Motel has 40 guest rooms and is located on the Eastside of Tucson. This property caters to many demand generatorssuch as the Davis Monthan Air-force Base, along with a mix ofcorporate and leisure business. An on-site owner/operator will beable to reduce costs and increase revenues. Additionally, the hotelhas a 2 bedroom 2 bathroom managers living quarters on-siteattached to the office. Wyndham has also agreed to relicense theproperty for the new owner. Other rebranding options are Motel 6,Studio 6, SureStay by Best Western, Red Lion, or Oyo.

PROPERTY OVERVIEW

The Super 8 Motel greatly benefits from its East Tucson, Arizonalocation at less than half-mile from Davis-Monthan Air Force Base.Additionally, the Tucson population is slightly over 1,000,000 andcontinues to be one of the fastest growing cities in the U.S. luringforeigners from all around the world, specifically, due to the idealclimate of nearly 360 days of sunshine all year round.

LOCATION OVERVIEW


Executive Summary

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SALE PRICE $1,975,000

LOCATION INFORMATION

Building Name Super 8 Motel

Franchise Of Wyndham Hotels & Resorts

Street Address 1990 S. Craycroft Road

City, State, Zip Tucson, AZ 85711

County/Township Pima County

Market Tucson

Submarket Tucson East Market

Cross Streets 22nd Street & Craycroft Road

BUILDING INFORMATION

Apn # 131-05-020A

Year Opened 1970

Building Size 13,771 SF

Building Type Brick

Number Of Floors 2

Number Of Rooms 40

Free Standing Yes

Zoning 0510 (Motel)

Parking Type Surface

Number Of Spaces 48

Roof Type Flat

UTILITIES & AMENITIES

Electric: Tucson Electric Power Co.

Water: City of Tucson

Waste: City of Tucson

Cable/Internet/Phone: Cox Communications

Washer Specifications: 1 35lb Unimac

1 Kenmore Residential

1 Whirlpool Residential

Dryer Specifications: 1 30lb Dexter

1 30lb Speed Queen

Door Locks: Onity

Pool: Yes Outdoor

AC/Heat Individual PTAC Units

ROOM MIX

Double Non-Smoking 11

Double Smoking 8

Queen Non-Smoking 7

Queen Smoking 4

King Non-Smoking 4

King Smoking 5

ADA Queen Non-Smoking 1

TOTAL ROOMS 40

CAPITAL EXPENDITURES OVERVIEW

PTAC Units 2018

Exterior Paint 2018

Roof 2018

Mattresses/Bedding 2018

Artwork 2018


Property Details

FINANCIALANALYSIS

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INCOME SUMMARY SUPER 8 MOTEL % OF TOTAL

Room Reveue as of 11/28/2019 $486,281 100.0 %

Gross Income $486,281

EXPENSE SUMMARY SUPER 8 MOTEL % OF REVENUE

Advertising $600 0.1 %Accounting Credit -$268 -0.1 %Breakfast Supplies $4,315 0.9 %Bank Charges $453 0.1 %Casual Labor $729 0.1 %Commissions $6,961 1.4 %Dues & Membership $1,138 0.2 %Insurance - General $14,108 2.9 %Insurance - Workers Compensation $3,589 0.7 %Laundry & Linen $6,150 1.3 %Legal & Professional Fees $7,095 1.5 %Motel Supplies $24,228 5.0 %Merchant Fees $9,999 2.1 %Office Expense $1,055 0.2 %Payroll Processing Fees $1,248 0.3 %Permits & Licenses $675 0.1 %Pest Control Services $585 0.1 %Pool Cleaning Services $1,279 0.3 %Postage $7 0.0 %Rent Equipment $3,159 0.6 %Repairs & Maintenance $27,234 5.6 %Franchise Royalties $42,095 8.7 %Salaries & Wages - Motel Employees $89,488 18.4 %Security Service $3 0.0 %Taxes - Payroll $10,049 2.1 %Taxes - Property $18,697 3.8 %


Income & Expenses

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INCOME SUMMARY SUPER 8 MOTEL % OF TOTALTaxes - Other $5 0.0 %Telephone $4,440 0.9 %Utility - Electric $22,671 4.7 %Utility - Gas $3,898 0.8 %Utility - Water, Sewer, Waste Disposal $20,185 4.2 %Utility - Cable and Internet $13,094 2.7 %

Gross Expenses $338,978

Net Operating Income $147,303


Income & Expenses

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PROPOSED FINANCING SUPER 8 MOTEL

Purchase Price $1,975,000Down Payment (20%) $395,000.00Senior Loan (80%) $1,580,000.00Interest Rate 6.0Amortization (yrs) 25Annual Debt Payment $10,180

OPERATING SUMMARY SUPER 8 MOTEL

Total Rooms 40Occupancy % 54.7%ADR $57RevPAR $31Gross Income $486,281 as of 11/28/2019Operating Expenses $338,978Net Operating Income $147,303Debt Service $122,160Debt Coverage Ratio 1.21

INVESTMENT SUMMARY SUPER 8 MOTEL

Pre-Tax Cash Flow $25,143Cash-on-Cash Return (yr 1) 6.37 %CAP Rate 7.5%Room Revenue Multiplier 4XPrice per Room $49,375


Financial Summary

LOCATIONINFORMATION

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A DIVERSE AND WELCOMING COMMUNITY...Tucson offers an outstanding quality of life along with a low cost ofdoing business. Tucson is known for its manufacturers leading theway in innovation, in sectors as varied as aerospace, biotech,defense, healthcare, information technology, optics, solar, andwater.Tucson has the highest concentration of startups of any U.S.city its size and is ranked as a top five city for entrepreneurs byEntrepreneur Magazine.Just 60 miles from the Mexico border, withhigh-capacity border and transportation infrastructure, Tucson isthe natural choice for companies doing business in the U.S. andMexico.

GROWTH INDUSTRIESThe Tucson region is fast becoming one of the nation's mostinnovative business centers. Life sciences programs at theUniversity of Arizona are international leaders in scientific researchand education. With access to cutting edge research facilities andstaff, collaboration between higher education and biotechnologybusinesses attracts companies from startups to multinationalcorporations, including most recently, Ventana Medical Systems,Sanofi US, and the Critical Path Institute. Tucson is also ranked asone of the top 5 areas in the US in the Aerospace and Defensesector, thus becoming on of the major contributors to the region'seconomy.


Location Summary

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Demand Generators

PROPERTYIMPRESSIONS

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Property Impressions

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Property Impressions

ADVISORBIOS

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AZ #BR515223000 // NM #20316 CO #ER.100082810

DINESH DAN RAMA

Principal/Designated Broker

[email protected]: 602.648.2715 | Cell: 602.478.9636

PROFESSIONAL BACKGROUNDDinesh (Dan) S. Rama is a partner of NewGen Advisory and of Green Card Fund, an EB-5 RegionalCenter. He has had a career in the hospitality industry as a hotel operator and owner beginning in1994 after pursuing his Bachelor’s Degree at the University of Arizona and graduated with a BA inHistory and Mathematics from Arizona State University.

Between 2000 through 2007, Mr. Rama was under the guidance of Robert Fitzgerald, former ChiefOperating Officer of Best Western International and Sam Apostle, former President of RamadaHotels in advising clients on acquiring and divesting hospitality assets throughout the UnitedStates. Throughout Mr. Rama’s career, he has been involved with the disposition of over $900Millions of hospitality assets. He has brokered and advised clients on acquiring, merging, anddivesting of hospitality assets throughout the United States.

He is also a lifetime member and former Southwest Regional Director of the Asian American HotelOwners Association (AAHOA), and currently serves as an ambassador.. Since 2017 Mr. Rama wasselected and is still active on the board of the Arizona Lodging and Tourism Association (AzLTA)

EDUCATIONBA History & Mathematics University of ArizonaBA History Arizona State UniversityCertified Hotel Owner (CHO)General Manager Certifications from Holiday Inn, Motel 6, Days InnArizona Real Estate Broker, New Mexico Qualifying Broker, Colorado Employing Broker

MEMBERSHIPSAsian American Hotel Owners AssociationArizona Lodging & Tourism AssociationAmerican Lodging AssociationArizona Board of RealtorsGlobal TiesOmega Delta Phi AlumniUniversity of Arizona Alumni AssociationArizona State Alumni AssociationUniversity of Arizona Alumni AssociationArizona State University Alumni Association

NEWGEN ADVISORY1747 E Morten Avenue Suite 202

Phoenix, AZ 85020602.648.2700


Advisor Bio 1

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JIGAR "JAY" DESAI

Associate

[email protected]: 602.648.2700 | Cell: 520.664.4091

PROFESSIONAL BACKGROUNDJigar “Jay” Desai joined the NewGen Advisory team of Arizona in 2017. He is focused throughoutthe Southwestern regions of Texas to California assisting our clients with all their hotel and lodgingtransactional needs. Jay has a unique ability to connect prospective buyers with sellers whilefocusing on and balancing the critical financial needs of both making him a true asset to any teamand every client.

Jay’s extensive background in the hotel industry has given him the insight to better understand thecritical needs of his clients. Having grown up in the hotel industry, Jay’s ability to relate andunderstand the rigorous demands of hotel operations has provided the insight which has led tofacilitate successful transactions. Furthermore, prior to joining the NewGen team, Jay wasimmersed into the financing and lending world with a large national bank which gave him theunique view into the lending world and provided the connections which allow his clients to seekout financing for even the most challenging assets.

EDUCATIONJigar graduated from the University of Arizona in 2011 attaining a dual degree from Eller College ofManagement in Finance and Real Estate.

MEMBERSHIPSJigar is a member and ambassador for the Asian American Hotel Owners Association (AAHOA) andholds certifications for Choice Hotels and Best Western.

NEWGEN ADVISORY1747 E Morten Avenue Suite 202

Phoenix, AZ 85020602.648.2700


Advisor Bio 2

Arizona California New Mexico Texas Colorado1747 E Morten Avenue 5101 E La Palma Ave 500 Marquette Ave 1106 N State Hwy 360 7900 E Union AveSuite 202 Suite 100-A Suite 1200 Suite 302 Suite 1100Phoenix, AZ 85020 Anaheim Hills, CA 92807 Albuquerque, NM 87102 Grand Prairie, TX 75050 Denver, CO 80237

Documents

Exclusive Listing · Tucson offers an outstanding quality of life along with a low cost of doing business. Tucson is known for its manufacturers leading the way in innovation, in