Downtown Hotel - near State Capitol

Highlights:

• Tower is 12 floors with steel frame and glass curtain/masonry construction
• 213 hotel rooms (licensed with Ramada); 4 elevators;
• 86 rentals, 15 non-licensed rooms and 71 apartments (mostly monthly)
• Approximately 28,000 sq ft. of rentable commercial space
• Total land area - 7.2 acres m/l
• Approximately 40,000 sq. ft of banquet & various meeting spaces throughout
• 3 restaurant/lounge spaces (currently closed)
• Indoor pool and seasonal outdoor pool
• Leased luxury penthouse apartments (master leased) on 12th floor (square footage included above)

Description:

EXECUTIVE SUMMARY - This offering will be subject to short sale conditions.

This iconic hotel is being brought back to the market at a reduced price, after a hiatus due to the disruption of Covid 19.  It has been a hospitality staple for downtown Topeka for decades and is listed on the Topeka Historic Landmark record.  As before, the property, features the multiple income streams, including hotel, meetings/conventions, office space and apartments.  One recent change, however,  is the manager has limited the hotel F&B operation to breakfast only, and has outsourced the convention F&B to caterers.    The property is being now being offered at $750,000 less than 2020, and at less than $20K per key (hotel + apartments).   Upside could exist in the hotel operations with re-positioning and upgrades to the hotel rooms.   According to the county website, the site contains approximately 7.2 acres of prime land, just off I-70.  The 12 story tower and the convention facilities offer a solid structure for re-development only blocks from the State Capitol.  The hotel is located in an Opportunity Zone and benefits from the terms of a Community Investment District (CID) (2% sales tax reimbursement).

INVESTMENT CONSIDERATIONS:

Now Priced at $5,850,000
Offered at less than 2X total revenue (YE 2022)
Offered at $19,500 per key (hotel & apartments), with no price allocation to office/commercial space
A prime site, located directly off Interstate 70 in downtown Topeka
YE 2022 room revenue up 25% over YE 2021
Minutes to the State Capitol
Minutes to state government offices
Minutes to Kansas Expo Center
7.2 acres m/l (county website)
Opportunity Zone
CID district (2% sales tax reimbursement; reimbursed for qualified improvements)
The offering is subject to short sale conditions, including lender and owner approval

Topeka, with a county population of nearly 180,000, is known for its diverse economy related to the State Capital and the state and federal government offices.  However, it is also known for its manufacturing, university, medical, insurance, transportation, sports venues, and banking/financial sectors including quite a number of international companies.  It has historically been a strong hospitality market and the underlying business fundamentals are there to sustain it.