Property details

South Dakota Value-Add Motel Portfolio, Mountain - Prairie Region

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Property Description

South Dakota Value-Add Motel Portfolio

Ideal opportunity for an experienced motel operator.

The first is a Ramada which is a real dog!

The seller has an offer that they are just about to pull the trigger on (not our buyer).

The numbers are really not there. Definitely for deep pocket people who are motel savvy. The seller is close to taking the current offer (they are waiting to see if that buyer will qualify for the loan assumption. The window is still open, but not for long.

If interested, a buyer must move very quickly!

The Ramads as a $8.3M loan that needs to be assumed by the buyer. There are 3 years remaining with this note with an interest rate around 4.3%.

Cash due to the owner at closing is $1.2M (Total purchase price = $9,500,000

189 rooms, 118 of which have been remodeled.

This motel was slated to feed a now defunct amusement park.

It's had no less than $4M in capital expenditures in the last 36-48 months including exterior work, interior work and rooms.

That said, it doesn't perform to say the least.

The other asset is a 119 room Super 8 across the street.

The debt is $4M, cash due at closing is $500K ($4.5M total purchase price).

The buyer in-play is actually a syndicator sourcing deals for out-of-state investors. They have a roster of doctors and dentists who fund deals and a management company does all the heavy lifting.

We have in file the T-12 financials on the Ramada and a Smith Travel Research (STR aka "Star") report.

If a buyer does not have much motel experience, this portfolio will be a challenging start into that world. If you have partners that have that kind of experience, it might be worth examining.

The seller is more interested in doing a deal with someone in the region versus someone from out of state.

Hotels For Sale


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Property Information

Property Type:
Industry Type:
Hotel - Motel - Inn
Purchase Tenure:
Fee Simple

Existing financing information


The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.