The Asheville, NC Travelodge at 1500 Tunnel Road consists of 122 rooms. It is located at Exit 55 off I-40 and near Warren Wilson College, the Billy Graham Training Center, and the Blue Ridge Parkway. Up to 100 of these units are available on an individually negotiable “best offer” basis or as a group through syndication. See: http://www.oocities.org/wncref
The Real Estate Exchange, Les Smith, Broker-In-Charge, came across the property when placing a new tenant in the on-site restaurant and we were approached about financing for rehabilitating the entire property (“The Exchange” has in-house mortgage brokerage and investment banking capabilities). The Travelodge is owned by a group of investors that are adverse to interest payments for religious reasons; hence, the concept of the sale-repurchase of individual rooms on an income split basis.
Most of the units are in disrepair and would not support the $50 per night projected rentals; however, the Day's Inn across the street and the Holiday Inn next door are at 60%+ occupancy and bring in considerably more... In other words, the market would support the pro-forma if the real estate were brought up to par.
Permits have already been pulled, and renovations for several "model units" are underway out of NOI. An experienced developer / contractor from nearby Winston-Salem has toured the site with us and plans to enter a bid for the project. Also, a V.P. from a private bank in Michigan plans to offer a specialized portfolio of funds available for condo-hotel unit mortgages on a 30 year schedule, interest only, with 20% down and a 5 year call. We have located a custodian that will hold real estate inside of a Self-Directed IRA.
THERE CAN BE NO ASSURANCE THAT THE ASSUMPTIONS CONTAINED HEREIN WILL OCCUR, AND VARIATIONS FROM THE ASSUMPTIONS MAY HAVE A SIGNIFICANTLY ADVERSE IMPACT ON THE PERFORMANCE OF THE PROPERTY. THIS INFORMATION DOES NOT CONTAIN AN UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO DISCLOSE ANY MATERIAL FACT NECESSARY TO MAKE THE FACTS CONTAINED HEREIN NOT MISLEADING. IT IS RECOMMENDED THAT THE PURCHASER RETAIN HIS OWN ACCOUNTANT AND ATTORNEY TO REVIEW THIS FINANCIAL INFORMATION.
THE SELLER RESERVES THE RIGHT TO UTILIZE THE EARNEST MONEY DEPOSIT OF THE PURCHASER FOR PAYMENT OF COSTS RELATED DIRECTLY TO THE ACQUISITION, DEVELOPMENT, AND CONSTRUCTION OF THE SUBJECT PROPERTY; PROVIDED, HOWEVER, THAT NO FUNDS SHALL BE UTILIZED UNTIL (1) AN IRREVOKABLE LETTER OF CREDIT OR SURETY BOND IS POSTED TO ASSURE THE RETURN OF THE EARNEST MONEY DEPOSIT, WITH A COPY OF SUCH IRREVOKABLE LETTER OF CREDIT OR SURETY BOND TO BE MAILED TO THE PURCHASER PRIOR TO THE RELEASE OF ANY FUNDS FROM ESCROW; OR (2) THE CONSTRUCTION LOAN FOR THE PROJECT HAS BEEN CLOSED AND ALL MATERIAL CONDITIONS PRECEDENT TO FUNDING HAVE BEEN SATISFIED.
THIS OPPORTUNITY HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION; NOR HAS THE COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. NO STATE HAS APPROVED OR DISAPPROVED THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Direct all inquiries to:
Les Smith
828-254-0001
Broker-In-Charge
The Real Estate Exchange
124 College St., Asheville, NC 28801
http://www.oocities.org/rex2540001/