Royal Inn

Highlights:

• Annual Tax: $ 4961.26
• Age: Over 50 Years Old
• Water: Central
• Sewer: Public
• Lot Size: 1/2 - 1 Acre

Description:

Royal Inn – Value-Add Hospitality Asset with Redevelopment Potential 542403 US Highway 1, Callahan, FL 32011 Offered at: $1,200,000
Seller Financing Available
$500,000 Down | 6% Interest-Only Terms Offered
Presented by Coldwell Banker Commercial Anabasis Realty
Property Overview: The Royal Inn presents a compelling investment opportunity in the rapidly growing corridor of Northeast Florida. Situated on a prominent hard corner along US Highway 1 in Callahan, this 24-room motel offers both immediate cash flow and significant upside potential through operational enhancements or redevelopment.
Key Highlights:
Room Mix: 12 single-bed rooms offered at $80/night and 12 double-bed rooms offered at $107/night (or $400/week on week to week basis)
Additional Units: Includes an 1,360 square foot owner's suite and a 1,759 square foot separate commercial building currently leased to a jiu-jitsu school at $1,250/month (below market rate, previously occupied by a restaurant) for a total of 8,1999 heated square feet of commercial space.
Current Operations: Owner-occupied and operated with minimal marketing efforts, generating approximately $125,000 in annual gross revenue.
Parking: Ample on-site parking accommodating guests and potential future developments.
Lot Size: Expansive parcel offering flexibility for various redevelopment options.
Market Insights:
Traffic Counts: The property benefits from high visibility with traffic counts exceeding 19,500 vehicles per day on US Highway 1 .
Regional Growth: Callahan is experiencing increased commercial activity, with new developments such as Hagan Ace Hardware's 60,000 sq. ft. flagship store nearby .
Hospitality Market: Comparable motels in the North East Florida area are listed at significantly higher price points, indicating a strong market for value-add opportunities.
Investment Potential:
Operational Upside: Implementing professional management and targeted marketing strategies could substantially increase occupancy and revenue.
Redevelopment Opportunities: The property's size and location make it suitable for conversion to multifamily housing, extended-stay accommodations, or mixed-use developments.
Strategic Location: Proximity to major highways and growing commercial centers enhances the property's appeal for various uses. This property was previously under contract with a national developer considering a Dunkin' Donuts location, underscoring its prime positioning and potential.
Property Systems & Condition: The Royal Inn has a solid physical foundation with key system updates already in place, reducing near-term capital expenditure risk for investors or operators:
Structure: Concrete Block Construction Roofing:
Commercial building and owner’s suite roofs were replaced in 2024
Motel structure roof is approximately 12 years old and performing well
Electrical:
GFCI outlets present in wet areas
Ownership believes the property is wired with copper (to be verified)
Plumbing:
PVC plumbing throughout the property
Connected to city water and sewer
Windows & HVAC:
Updated windows across most units
HVAC systems are in place and functioning for both the owner’s suite and the commercial building
These improvements support ongoing operations while offering a strong baseline for repositioning or redevelopment.