Recent NHMB Successes
– Hawthorn Suites in Ann Arbor Michigan
This property is out of our normal territory, but one of the lenders called us in to help get it sold. The property had been previously foreclosed on and was operated by a receiver. The Hawthorne franchise had been terminated and the property was not only off the Wyndham system but all of the OTAs. Income had decreased significantly. We worked with Wyndham and were able to get the franchise back. The relationship with the OTAs was restored and income increased by 40%. With the gross room income increasing we were able to get a satisfactory price to the seller/lender and close the transaction.
– B&B in Sutter Creek California
This five unit B&B was struggling due to ownership’s lack of operating experience. We worked out a deal with both of the existing loans to discount to a saleable price and then assisted the owners in a workout with the personal guarantee on those loans.
– The Anchorage Inn Motel, Lakeport, CA
The Anchorage Inn was a lender-owned property in the resort town of Lakeport, CA. We assisted the bank in taking over the property following the trustee sale. We developed an interim plan while the property was closed down. We then found a suitable buyer and procured a very quick close that was extremely satisfactory for the lender and the buyer.
– Choice Hotel, Oregon
This 75 unit hotel was under performing due to lack of highway traffic and the economic downturn. There were also competing with two other Choice properties in town. We were able to cooperate with another agent who found a buyer that converted it to a Best Western and is now looking at a very successful year. We then worked with the former owner and Don Turner of Jorad & Company in Napa to arrive at a settlement with SBA on the former owners personal loan guarantee at only cents on the dollar.
– The Historic Holbrooke Hotel, Grass Valley, CA
The lender for this unique property asked us to assist the owner in listing it for sale. We worked with the seller and both lenders while we negotiated multiple contracts with multiple buyers until the right deal came to fruition. This was a complex sale to say the least, but it is a good example of the fact that we never give up on a deal. NHMB goes to the greatest lengths to find a solution that works for all parties in a transaction.
– Northern California Hotel Lease
We were asked to assist one of our best clients in getting their full-service property listed and sold. A more expedient solution was to find a long term lease for the property. We were able to put an appropriate lessee in place which allowed the owner to concentrate on other investments. Additionally, the lessee is in position to purchase the property when market conditions are more favorable.
– The Quality Inn, Oakdale, CA
The Quality Inn Oakdale is a 70 unit full-service hotel which was previously a Ramada Inn franchise. The property was unable to meet its debt srvice due to the decline in the lodging market. We found an interested buyer and negotiated a favorable deal with the owner and the bank. Although the lender was forced to pursue a trustee sale, we had an offer in hand immediately. We were able to close escrow the following week. Not only did we assist the buyer and lender with the transfer of ownership, we also negotiated successfully with the city of Oakdale on a tax lien issue.
– The Concord Inn and Suites, Concord, CA
The Concord Inn and Suites is a 42 unit interior corridor hotel which was previously a Comfort Inn franchise. The property lost its Choice flag and experienced a drastic decline in revenue since it last sold in 2007. We listed the property and found a buyer to purchase the property with the plan of converting it to a budget extended stay property unter the “Studio 6” brand by Accor. We negotiated with the lenders to reduce the principal by approximately $1,000,000 and were able to complete the sale prior to foreclosure. This saved the seller from more damage to his credit rating and the buyer was able to purchase the property for approximately 60% of the previous selling price.
– The 5 Seasons Resort, Guerneville, CA
This resort property in Guerneville, CA was a bank owned REO that had been recently closed down. The previous owner had left a substantial tax liability on the property. We obtained a listing from the bank and within five days, we presented them with a full price purchase offer. Escrow closed within three weeks. The new owners are refurbishing the rooms and are preparing for the coming season which they expect to exceed previous income levels.
– Berkeley Rodeway Inn, Berkeley, CA
This 42 unit franchised property was previously a run down independent motel with very low occupancy and excessive deferred maintenance. We negotiated the sale in 2006 to a group of investors who completely refurbished the property and converted it to a Rodeway. The income increased 400%. We then found an in experienced investor who bought the property with our assistance in procuring a new SBA 504 loan.
– Gold Beach Motel 6 – Gold Beach, OR
This 50 unit franchised property on the Oregon coast was purchased by a couple with no prior hotel experience. We were able to assist them in obtaining a new SBA 504 loan with a very low down payment and excellent terms. We also assisted them in negotiating a reduced Property Improvement Plan from Motel 6. This gave them more time to complete some upgrades to the building. The property produces a strong income, with the reduced expense of the onsite owner/operator, the capitalization rate on this sale is over 12%.