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Holiday Inn, Otsego, Minnesota Note Sale / Bank-Owned
DISCOUNTED: 52%APPRAISED VALUE:
OFFERING PRICE: $9,672,000
Foreclosure / Note Sale
Holiday Inn
Otsego, MN
127 ROOM HOLIDAY INN WITH 20,000 SF INDOOR WATERPARK
Otsego, Minnesota
HIGHLIGHTS
-
- Collateral 127 room Holiday Inn with Water park
- Note price now for 9,672,000
- More info with call to bank with buyer online
- Hotel was developed by owner operator with $8MM equity from Geneva Exchange Fund XXII LLC. Original Borrower has since been released from the loan and Geneva is sole borrower.
- Property was constructed in 2006 for $19,440,000.00 inclusive of the $3.6MM equipment for the 20,000 sq.ft. Indoor Water Park.
- Property has struggled since opening and is presently operating at a breakeven excluding debt service.
- 2007 ADR 1st 3 quarters was $121.00 at 40% occupancy.
- Management is operating on a limited budget.
- The borrower (Geneva) has proposed several restructure deals with the bank but has not come through on any of the proposals
- There are various appraisals and hotel studies in the file that indicate values from a high of $20MM to a low of $3.8MM.
Opinion: Because of the numerous valuations, the restricted marketing budget, the fighting between the developer Fields and the investor Geneva, it is very difficult to determine the present value from the file. Some of the lower values came from reports ordered by Geneva which could have been done in an attempt to take control of the project. This deal gets very interesting because of the large cash investment by Geneva ($8MM) and the fact that the investors in Geneva are partners through a Tenants in Common (TIC) 1031 Tax free exchange. TAKE A LOOK! Contact Person's Name: James Jarrell
Contact Phone Number: +1 702-882-8657
Contact E-mail address: jjarrelldlgrealty@yahoo.com
Brokerage Name: DLG Realty and Investments
Submitted by: admin
Property ID Number: 53
Property ID Name: Holiday Inn
Added: Fri May 09 2008
