Holiday Inn Express Downtown Sacramento | SOLD

728 16th Street, Sacramento, CA

$18,900,000

Price

81,814 sqft

Building Size

1.18 acres

Lot Area

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Street
Map
Overview
Building Size
81,814 sqft
Lot Area
1.18 acres
Keys
132
Description

The Hotel-Innvestments Team at KW Commercial is pleased to present to qualified investors the opportunity to acquire the fee simple interest in the 132-room Holiday Inn Express Downtown Sacramento Convention Center, California. Located in the Downtown CORE, the four story hotel is positioned on a 1.18 acre site and is convenient to the incredible Downtown Revitalizing Projects including the $512M, Downtown Plaza & Kings Stadium redevelopment project, the $220M Convention Center expansion and renovation, the Railyards Infill Project, the new County Courthouse with construction estimated at $440M, the $78M Powerhouse Science Center, the expansive Township 9 Housing Development, and the anticipated Republic FC Soccer Stadium.
The Sacramento Region, one of the top five visitor markets in California, generated $4.08 billion in tourism revenue. Sacramento County saw a 5.9% increase in total spending last year. Travel to the county supported 31,290 jobs, most of which, 18,240, were in accommodations and food service. Travelers spent $440M, a 7% increase, on accommodations and $886M, a 3.9% increase, on food service in the county last year.
The seller of the property has invested significant money and time to renovate the lobby to comply with the Formula Blue Brand Standard. The seller is continuing to renovate the property and will complete the renovation of all of the bathrooms by the close of escrow (the buyer will be responsible for the balance of the PIP). The disruption of the renovation has had a major impact on the top line revenue but the hotel is expected to provide the buyer with a significant lift in revenue once the renovation is complete.
The timing of the renovation work at the hotel coincides with modifications being made to the Sacramento Convention Center (SCC). The SCC, 2 blocks from the hotel, is currently closed for renovation and expansion. The expansion of the SCC will included 65,514 of new event space, 34,835 of new pre-function space, and 36,254 of additional support space. The renovation is set to conclude in 2020 providing the buyer the hotel with an excellent Year 1 scenario.






The Holiday Inn Express offers an incredible location in downtown Sacramento blocks away from the State Capitol and government offices, entertainment and convention venues, and multiple leisure and corporate demand generators including the historic Governor’s Mansion, Sacramento Convention Center, Wells Fargo Arena, Civic Auditorium, State Capitol, Music Circus, Old Town.
Sacramento, Sacramento Jazz Festival, Arden Fair Mall, Cal Expo, Raley Fields, Cal State University, UC Davis Medical Center, and Sacramento Zoo to list a few of the more prominent attractions currently in place. The property’s location is a strong positive advantage compared to its competition, as it is the closest mid-scale property to the Convention Center and Wells Fargo Pavilion, and reportedly commands much of the city’s convention business. Upside potential exists with a focused marketing effort to solidify the property’s position as the unofficial “host hotel” for convention business. Additionally, there are several rehabilitation and new construction projects composing of mostly mid-class and high-end multi-family units.

Highlights
  • Priced significantly below replacement cost
  • Conversion Opportunity to Student Housing/Multifamily/Senior Housing
  • Downtown CORE / High Barrier Market
  • Property is Closed extended period / Potential Termination of Union
  • Property is unencumbered by a management agreement
  • The lobby is renovated to meet Formula Blue standards
Location
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