Mill Rose Inn€¦ · 5 Mill Rose Inn Half Moon Bay, CA PROPERTY DESCRIPTION INVESTOR HIGHLIGHTS • Destination Coastal Lodging Property with Year Round Business • Turn Key Asset

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Mill Rose Inn HALF MOON BAY, CA

Offering Memorandum

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CONFIDENTIALLITY AND DISCLAIMER

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Mill Rose Inn Half Moon Bay, CA

Table of Contents

Section 1 PROPERTY DESCRIPTION

Section 2 RECENT SALES

Section 4 DEMOGRAPHIC ANALYSIS

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PROPERTY DESCRIPTION


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Mill Rose Inn Half Moon Bay, CA PROPERTY DESCRIPTION

INVESTOR HIGHLIGHTS

• Destination Coastal Lodging Property with Year Round Business

• Turn Key Asset with Brand Name Recognition Built Over the Last 40 Years

• 4 Diamond AAA Award Winning Inn, For 27 Consecutive Years & Select Registry Award Inn (Past 10 Years)

• First Bed and Breakfast in San Mateo County

• Set on .23 Acre of Prime Developable Commercial Downtown Zoned Land

• 5 Car Garage Currently Used for Storage & Massage Therapy Space, has Potential to be Converted Into a 1 Bed/1 Bath Innkeeper’s Room

or Revenue Generating Additional Unit

• Special Events from Weddings to Business Conferences, Provide Biggest Potential for New Revenues

The increased demand for weddings, special events, executive retreats, and many other lucrative sources of reve-

nue, puts a new investor well positioned for greater financial success in the coming years. The property also has

many different potential repositioning opportunities, new owners will be inheriting a award winning brand, that

lays the foundation for tapping into unused potential for room & special event revenues.

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INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

• European Themed Bed & Breakfast, 6 Luxury Units

• Turn Key Asset with Huge Upside in Room, Restau-

rant, and Event Revenues

• 10,000 SQFT Lot Zoned Commercial Downtown

• Close to Shops on Vibrant Main St., Lots of Foot

Traffic

• Located off the Scenic Pacific Coast Highway, Easy

Stroll to Beaches , 25 Miles South of San Francisco

• Short Drive to Ritz-Carlton Hotel and

Half Moon Bay Golf Links

• Great Repositioning Opportunities

• One of a Kind Property, High Barrier to Entry Market

• High Income Bay Area & International Clientele,

Repeat Guest History

The Mill Rose Inn is a 6 room luxury Bed & Breakfast located in historic downtown Half Moon Bay, just off the popular scenic Pacific Coast

Highway. Built in 1901, the property was remodeled in 1985 and has been maintained immaculately. This CSAA 4 Diamond Award Winning

European Boutique Inn, is renowned for its world famous gardens, lodgings, delicious culinary treats, close proximity to beaches, shops, and

restaurants. Guests enjoy therapeutic massage treatments and the garden enclosed jacuzzi spa to enhance their escape. The property consists

of 4,485 net rentable square feet on a 10,000 square foot lot and is zone Commercial Downtown. The site is well located just off Main St. in

historic downtown Half Moon Bay . The property boasts substantial quality frontage on Mill St. and provides good visibility and signage. The

Mill Rose Inn is located just off the breathtakingly beautiful Pacific Coast Highway, that wraps up and down the California Coast and is en-

joyed by thousands of travelers, year round, from around the world. The Mill Rose Inn is the first Bed & Breakfast in San Mateo County, open-

ing their doors in 1978. Guests here enjoy the many activities that Half Moon Bay and the coast have to offer, and experience a uniquely luxu-

rious experience unlike any other. The Mill Rose Inn offers Couple’s Packages, Wedding Services, Conferences, Corporate Retreats, and a wide

variety of Special Events.

The property is located two blocks off of Kelly Ave and Main St., the heart of Half Moon Bay, and epicenter for shops, restaurants, art galler-

ies, and offices. The site is a quarter mile from the CVS and Safeway anchored Strawflower Shopping Center and 6 blocks from the Rite Aid

and New Leaf Community Market Retail Center. Half Moon Bay has also seen a recent upswing in commercial real estate construction, devel-

opments, and proposals. The Strawflower Village Shopping Center was recently purchased for $29 million and the new owners are planning on

spending at least a few million dollars in remodeling and updating the city’s largest shopping center. Downtown Half Moon Bay recently saw

the opening of the brand new Boys & Girls Club. The new state of the art facility that is the Half Moon Bay Library, 576 Kelly Ave (4 Mixed

Use Units, Office/Retail downstairs and Condos upstairs), and 719 Main St., a brand new 2700 SQFT Office Building, are all to be completed by

the Summer of 2018.



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FEATURES AND AMENITIES

Common Are Features

• Meeting Room for 25-35

• Library and Parlor

• Business Class High-Speed Wi-Fi

• Complimentary Refreshments, Coffees, and Baked Goods

• English Country Gardens with Patio and Firepit

• Afternoon and Evening Wine and Cheese Reception

• Private Enclosed Garden Gazebo with Tropical Plants,

Fountain, and Jetted Spa Tub

• Massage Room for Individual/ Couple’s Treatments

Room Amenities

• Private Entrances, Garden Views

• Luxury 600 Thread Count Linens, Feather King/

Queen Beds with Duvets

• Private Baths with Clawfoot or Whirlpool Tub &

Shower

• Business Class High Speed Wi-Fi

• Soft Spa Robes and Slippers

• In-Room Hair Dryer, Iron Board

• In-Room Coffee Maker, Tea, Decaf, and Hot Chocolate

• Raised One Touch Gas Fireplaces with Hand Painted

Tiles

• Mini Fridge with Complimentary Beverages

• Flat Screen Cable HDTV and Extensive DVD Library

• Complimentary Full gourmet Champagne Breakfast

• Concierge Service

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Opened in 1980, the Mill Rose Inn was the creation of interior and floral designer/wedding coordinator Eve and

her husband, landscaping contractor, Terry Baldwin. The couple transformed their 1901 cottage into a unique en-

vironment, which is now the best Bed and Breakfast on the Coast and made history in being the first Bed and

Breakfast in San Mateo County.

The Inn is a place like no other, with its beautiful English country gardens, all of the conveniences of a world class

hotel, the charm and the gracious services of a small country inn, all of which beautifully combine into a Four Dia-

mond AAA award winning property. Valuable antiques and watercolors, opulent décor and period furnishings cre-

ate an ambiance of relaxed elegance in this Half Moon Bay Inn. Reminiscent of an European country Inn, each

guestroom has views of the garden and back patio.

The Mill Rose Inn is primed for a new investor to step in and run this turn key operation, or the property can be

repositioned with an insertion of new capital. The 5 car garage is currently used for storage and a massage thera-

py studio. This could be reconfigured into an innkeeper’s 1 bedroom/ 1 bathroom unit, a 7th guestroom producing

more revenue, or a larger massage therapy space.

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INVESTMENT OVERVIEW

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The Mill Rose Inn is a perfect destination for weekend travelers, honeymooners, and food lovers who enjoy fresh seafood and local California

cuisine. Half Moon Bay is home to the annual Pumpkin Festival every October, which draws thousands of visitors from around the country. The

scenic Pacific Coast Highway is also a favorite route of vacationers driving up and down the California Coast from San Diego to San Francisco.

Guests enjoy local activities such as surfing, horseback riding, exploring the many beaches, fishing, hiking in the redwoods, biking the coastal

trail, stand up paddle boarding, kayaking, wine tasting, golfing, shopping, and dining

Half Moon Bay is a major coastal town in San Mateo County. It is located 25 miles south of San Francisco and 41 miles north of San Jose and

just a 25 minute drive west of SFO International Airport. The city has a growing population of over 19,675 people, an average household in-

come of $151,066 and a median home value of $1,236,820. Half Moon Bay is cited for its beautiful beaches, scenic views, and adventurous hik-

ing trails. The city is home to the elegant Ritz-Carlton Golf and Spa Resort, and the world famous Mavericks Big Wave Surf Spot & Contest.

San Mateo County home prices are approaching $2 million and Half Moon Bay is close behind. The county boasts a stable economy with high

growth in construction and technology industries and 2018 has seen some of the lowest historical unemployment rates in recent history

The Mill Rose Inn is a great opportunity for an investor to purchase a unique hotel in one of the highest entry barrier markets, with year round

business. The San Francisco Bay Area has experienced massive growth over the last decade, becoming the center for tech companies, startups,

bioengineering, financial services, healthcare, education, and construction companies. Unemployment has reached a nationwide low of 2.5%-3%

in the Bay Area. San Jose Metro is the number one job market in the country and the San Francisco-Oakland Metro is right behind it. The

housing markets of Northern California have been enhanced by the job market growth as well, with housing prices still some of the highest in

the country and rental rates just as high. San Mateo County in particular has a median home value of $1,299,150.

Tourism in the Bay Area has increased significantly. Over 70 million visitors from around the world, a year fly into the 3 international Bay

Area airports. Each year $14 billion in tourism related activities is contributed to the Bay Area economy and as a result hotel revenues have

almost doubled since 2014.

Local occupancy levels on the coast are consistent at 70%, while revenues have been on the upswing at 12% yearly. The Mill Rose Inn provides

the opportunity for the right buyer to increase the Food & Beverage, Rooms, and Wedding/Events Revenues. Half Moon Bay attracts guests

from the Bay Area and abroad; with its inviting beaches, picturesque hiking trails, art galleries and unique dining venues.


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HALF MOON BAY

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PROPERTY SUMMARY

The Offering

Site Description

Room Breakdown

Property Mill Rose Inn

Property Address 615 Mill St.,

Half Moon Bay, Ca 94019

Property Type Hospitality

Assessor’s Parcel Number 056-161-050

Year Built/Renovated 1901/1985

Type of Ownership Fee Simple

Rentable Square Feet 4,885 SQFT

Lot Size 10,000 SQFT

Zoning CD

Parking Street Parking

Street Frontage Mill St.

Cross Street Church St.

Highway Access Highway 1, Highway 92

Number of Floors 2

Handicap Parking Yes

Truck Parking Yes

Property Tier Premier

Location Type Coastal

Transient Occupancy Tax Rate 12%

AAA Diamond Rating 4 Diamond (28 Years Consecutive)

Select Registry Yes (10 Years Consecutive)

Queen 4

King 2

Total Number of Guest Rooms 6

Jacuzzi Units (Total Included) 1


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PROPERTY SUMMARY

Construction/Mechanical

Interior Room Detail

Foundation Concrete

Framing Wood

Exterior Wood

Parking Surface Asphalt

Roof Composition

Plumbing Good

Elevator N/A

HVAC Individual

Fire/Life/Safety Yes

Heating System Central

Condition of Heating System Good

Cooling System N/A

Type of Bath/Shower Tub/Shower Combination

Condition of Bath/Shower Good

Bathroom Tile Type French

Condition of Bathroom Tile Good

Dressing Area Yes

Condition of Dressing Area Good

Type of Furniture Wood

Condition of Furniture Good

Window Coverings Drapes

Condition of Window Coverings Excellent

Room Floor Coverings Wood & Carpet

Condition of Floor Coverings Good

Wall Coverings Paper & Paint

Condition of Wall Coverings Good

Televisions 42”/48” Flatscreens

Condition of Televisions New

Microwave/Refrigerator Yes

Condition of Microwave/Refrigerator New

Phone System Yes

Voice Mail Yes

Internet Access Complimentary Wi Fi

Fireplaces Yes (Each Room)

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RECENT SALES

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1 Mill Rose Inn

2 Seal Cove Inn

3 Landis Shores Inn

4 Inn at Depot Hill

5 Babbling Brook

6 Payne Mansion

RECENT SALES MAP

Mill Rose Inn Half Moon Bay, CA Recent Sales

Mill Rose Inn Half Moon Bay, CA RECENT SALES

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RECENT SALES

Mill Rose Inn

615 Mill St.,


Total Rooms: 6 Price/ Room: N/A

Year Built: 1985 ADR: $358.68

Occupancy: 47.1% RevPar: $180.76

CAP RATE: N/A

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2 Seal Cove Inn

221 Cypress Ave,

Moss Beach, Ca 94038 Sales Price: $5,300,000

Total Rooms: 11 Price/ Room: $481,818



CAP RATE: 6.05% Close of Escrow: 5/17/2018

3 Landis Shores Inn

207-211 Mirada Rd.

Half Moon Bay, Ca 94019 Sales Price: $4,888,000


Year Built: 1999 ADR: $254

Occupancy: 70% RevPar: $177.80




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RECENT SALES

4 Inn at Depot Hill

250 Monterey Ave,

Capitola, Ca 95010 Sales Price: $3,025,000





Babbling Brook

1025 Laurel St.,

Santa Cruz, Ca 95060 Sales Price: $2,860,000





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Element Real Estate

Payne Mansion

1409 Sutter St,

San Francisco, Ca 94109 Sales Price: $10,550,000

Total Rooms: 10 Price/ Room: $1,055,000

Year Built: 1881/2014 ADR: $500.00

Occupancy: 90% RevPar:


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CAP RATE AND PRICE PER ROOM

AVERAGE CAP RATE= 5.61%

AVERAGE PRICE PER ROOM= $523,980



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OCCUPANCY AND AVERAGE DAILY RATE

AVERAGE OCCUPANCY= 74%

AVERAGE ADR= $304.37


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DEMOGRAPHIC ANALYSIS


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Mill Rose Inn Half Moon Bay, CA DEMOGRAPHIC ANALYSIS-HALF MOON BAY

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DEMOGRAPHIC REPORT

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Mill Rose Inn Half Moon Bay, CA DEMOGRAPHIC ANALYSIS-SAN FRANCISCO


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DEMOGRAPHIC REPORT

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POPULATION DENSITY

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EMPLOYMENT DENSITY

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AVERAGE HOUSEHOLD INCOME

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DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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POPULATION DENSITY

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EMPLOYMENT DENSITY

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Mill Rose Inn Half Moon Bay, CA DEMOGRAPHIC ANALYSIS-SAN MATEO

DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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DEMOGRAPHIC REPORT

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POPULATION DENSITY

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EMPLOYMENT DENSITY

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OFFERING MEMORANDUM

PRESENTED BY:

Matthew Aragoni

Associate

40 Stone Pine Rd, Suite H


Cell; (650) 483-8949

License: CA: 01978236

[email protected]

Element Real Estate

Documents

Mill Rose Inn€¦ · 5 Mill Rose Inn Half Moon Bay, CA PROPERTY DESCRIPTION INVESTOR HIGHLIGHTS • Destination Coastal Lodging Property with Year Round Business • Turn Key Asset