Old Hickory Inn

Transcription

Old Hickory Inn

Old Hickory Inn
JACKSON, TN
OFFERING MEMORANDUM
Old Hickory Inn
JACKSON, TN
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be
reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or
entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,
unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not
made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal
regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant,
or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified,
and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this
marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,
service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Old Hickory Inn
TABLE OF CONTENTS
Section 1
PRICING AND FINANCIAL ANALYSIS
Section 2
PROPERTY DESCRIPTION
Section 3
RECENT SALES
Section 4
COMPETITIVE PROPERTIES
Section 5
MARKET OVERVIEW
Section 6
DEMOGRAPHIC ANALYSIS
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
JACKSON, TN
P&L
Profit & Loss Statement for Old Hickory Inn 2014
Room Revenue
Lounge Revenue
Meeting Room Revenue
Telephone/Pets/Misc
$ 835,405.00
$ 48,000.00
$ 19,575.00
$ 6,235.00
$909,215
Total Revenue
Expenses
Sales Taxes
Payroll
Payroll Taxes
Total
Utlities
Water &Electricity
Gas
Telephone
Cable
Property Management System
Office Supplies
Pest Control
Jackson Trash Services
Housekeeping Supplies
Laundry Supplies
Breakfast Supplies
Maintainence
Property taxes
Property Insurance Capital Improvement
Total
$ 113,672.00
$ 102,700.00
$ 9,275.00
($113,672)
$225,647
$ 78,755.00
$ 11,575.00
$ 6,475.00
$ 13,421.00
$ 4,500.00
$ 1,575.00
$ 1,200.00
$ 2,279.00
$ 22,475.00
$ 4,800.00
$ 45,675.00
$ 48,695.00
$ 30,000.00
$ 12,224.00
$ 54,795.00
($54,795)
$283,649
Total Expenses $509,296
Net profit
$399,919
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0120418 Marcus &
Millichap. All rights reserved.
1
Old Hickory Inn
JACKSON, TN
OFFERING SUMMARY
Major Employers
Local
Employees
Company
Health Partners
Price
Down Payment
Total Rooms
$2,890,000
2,627
Transportation Services
900
Jackson Tennessee Hosp Co LLC
600
Tenn Dept Childrens Services
580
Fcpi
500
Pinnacle Foods Group LLC
500
Tennessee Dept Transportation
500
Walmart
500
Jackson Clinic Prof Assn
432
30.0% / $867,000
144
Price/Room
$20,069
Occupancy
52.0%
ADR
$33.00
Union University
430
RevPAR
$14.03
Tennessee Tbdn Company
410
Murray Guard
400
Number of Buildings
3
Number of Floors
2
Year Built/Renovated
Lot Size
Type of Ownership
1969 / 2010
152,460
Fee Simple
Demographics
1-Mile
VITAL DATA
CAP Rate - Current
RRM - Current
Net Operating Income - Current
3-Miles
5-Miles
2014 Total
5,871
34,791
67,514
13.84%
2019 Total
5,901
35,562
69,242
4.00
2014 Total
2,632
13,923
25,902
2019 Total
2,654
14,364
26,736
Median HH Income
$34,731
$42,442
$41,394
Per Capita Income
$23,125
$25,974
$24,695
Average (Mean) HH
$50,780
$63,015
$62,448
$399,919
Net Cash Flow After Debt Service - Current
31.82% / $275,914
Total Return - Current
34.65% / $300,431
2
Old Hickory Inn
JACKSON, TN
FINANCING
Existing Financing
Loan Type
Free and Clear
Proposed Financing
First Trust Deed
Loan Amount
Loan Type
$2,023,000
Proposed New
Interest Rate
5.5%
Amortization
25 Years
Debt Coverage Ratio
3.23
3
Old Hickory Inn
JACKSON, TN
FINANCIAL SUMMARY
Old Hickroy Inn
Purchase Price
Down Payment
Proposed Financing‐New First
New First
Interest Rate
Amortization
Monthly Interset Only
Operating Summary
Rooms
Available Rentable Rooms
Romms Sold Occupancy
ADR
RevPar
Room Revenue
Other Revenue
Gross Revenue
Operating Expenses
NOI
Less Debt Services
Pre‐Tax Cash Flow
Debt Coverage Ratio
Investment Summary
Cash On Cash Return
CAP Rate
Room Revenue Multiplier
Price Per Room
$2,890,000
$867,000
$2,023,000
5.5%
25
$10,333.75
2014
144
52560
27331
52.00%
$33.00
$17.16
$721,733
$73,810
$795,543
$395,624
$399,919
$124,005
$275,914
2.23
90.72%
10.23%
100%
50%
50%
32%
13.84%
4.00
$20,069
4
Old Hickory Inn
JACKSON, TN
FINANCIAL OVERVIEW
Location
Financing
1849 Highway 45 Bypass
FIRST TRUST DEED
Jackson, TN 38305
Loan Amount
Price
Down Payment
Total Number of Rooms
Price/Room
$2,890,000
Interest Rate
5.5%
144
Amortization
25 Years
$20,069
52.0%
ADR
$33.00
RevPAR
$14.03
52,560
CAP Rate - Current
RRM - Current
Lot Size
Type of Ownership
Proposed New
30.0% / $867,000
Occupancy
Rooms Sold
$2,023,000
Loan Type
Loan information is time sensitive and subject to change.
Contact your local Marcus & Millichap Capital Corporation
representative.
27,581
13.84%
4.00
1969 / 2010
152,460
Fee Simple
Annualized Operating Data
Income
Current
% of GR
Room Revenue
$721,733
90.7%
Other Revenue
$73,810
9.3%
Gross Revenue
$795,543
Total Expenses
$395,624
49.7%
Net Operating Income
$399,919
50.3%
Debt Service
$124,005
Debt Coverage Ratio
Net Cash Flow After Debt Service
Principal Reduction
Total Return
3.23
31.82% / $275,914
$24,517
34.65% / $300,431
5
Old Hickory Inn
JACKSON, TN
INCOME AND EXPENSES
Total Number of Rooms
144
52,560
Rooms Sold
27,581
% of
GR
POR
PAR
$721,733
90.7%
$26.17
$5,012
Lounge Revenue
$48,000
6.0%
$1.74
$333
Meeting Room Revenue
Current
Occupancy
52.0%
ADR
$33.00
RevPAR
$14.03
Income
Room Revenue
Other Revenue
$19,575
2.5%
$0.71
$136
Telephone/Pet/Misc
$6,235
0.8%
$0.23
$43
Total Other Revenue
$73,810
9.3%
$2.68
$513
$28.84
$5,525
GROSS REVENUE
$795,543
Total Departmental Expenses
$212,040
26.7%
$7.69
$1,473
Total Undistributed Expenses
$141,360
17.8%
$5.13
$982
$42,224
5.3%
$1.53
$293
TOTAL EXPENSES
$395,624
49.7%
$14.34
$2,747
NET OPERATING INCOME
$399,919
50.3%
$14.50
$2,777
Total Fixed Expenses
6
Old Hickory Inn
JACKSON, TN
EXPENSES
Current
% of
GR
POR
PAR
$212,040
$212,040
26.7%
$8
$7.69
$1,473
$1,473
Other
$141,360
17.8%
$5
$982
TOTAL UNDISTRIBUTED EXPENSES
$141,360
17.8%
$5.13
$982
Property Taxes
Property Insurance
$30,000
$12,224
3.8%
1.5%
$1
$0
$208
$85
TOTAL FIXED EXPENSES
$42,224
5.3%
$1.53
$293
TOTAL EXPENSES
$395,624
49.7%
$14
$2,747
NET OPERATING INCOME
$399,919
50.3%
$15
$2,777
Departmental Expenses
TOTAL DEPARTMENTAL EXPENSES
Undistributed Expenses
Fixed Expenses
7
Old Hickory Inn
JACKSON, TN
REVPAR SUMMARY
Occupancy
Occupancy
2012
2013
2014
Trailing
12-Month
JAN
33.71%
40.00%
32.89%
32.89%
FEB
MAR
APR
MAY
JUN
JUL
AUG
42.16%
50.58%
45.29%
53.32%
62.03%
64.02%
61.58%
40.50%
48.00%
50.50%
69.90%
67.50%
68.20%
50.00%
34.79%
37.74%
39.92%
41.94%
43.90%
44.68%
45.53%
34.79%
37.74%
39.92%
41.94%
43.90%
44.68%
45.53%
SEP
OCT
48.77%
47.90%
46.80%
56.70%
45.64%
45.51%
45.64%
45.51%
NOV
41.00%
49.60%
44.41%
44.41%
DEC
40.96%
41.00%
43.57%
43.57%
AVERAGE
49.20%
52.48%
41.75%
41.71%
2012
2013
2014
Trailing
12-Month
JAN
FEB
MAR
APR
MAY
$24.22
$28.92
$25.00
$26.87
$25.24
$24.27
$28.78
$27.22
$26.86
$24.10
$27.57
$35.14
$36.13
$36.84
$37.55
$27.57
$35.14
$36.13
$36.84
$37.55
$28.00
JUN
$25.79
$27.28
$39.10
$39.10
$12.00
JUL
AUG
$25.24
$23.50
$27.37
$29.22
$35.77
$35.74
$35.77
$35.74
$8.00
SEP
OCT
$25.11
$23.98
$27.54
$27.20
$31.83
$31.01
$31.83
$31.01
$0.00
NOV
$24.97
$26.77
$23.70
$23.70
DEC
$24.98
$27.32
$24.63
$24.63
AVERAGE
$25.24
$26.92
$32.89
$32.92
2012
2013
2014
Trailing
12-Month
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
$8.16
$12.19
$12.64
$12.17
$13.46
$15.99
$16.16
$14.47
$9.71
$11.66
$13.07
$13.56
$16.84
$18.41
$18.67
$14.61
$9.07
$12.23
$13.63
$14.71
$15.75
$17.16
$15.98
$16.27
$9.07
$12.23
$13.63
$14.71
$15.75
$17.16
$15.98
$16.27
SEP
$12.24
$12.89
$14.53
$14.53
OCT
$11.49
$15.42
$14.11
$14.11
NOV
$10.24
$13.28
$10.53
$10.53
DEC
$10.23
$11.20
$10.73
$10.73
AVERAGE
$12.45
$14.11
$13.72
$13.72
100.00%
10.00%
1.00%
2012
2013
Trailing
12-Month
2014
Trailing
12-Month
ADR
ADR
$32.00
$24.00
$20.00
$16.00
$4.00
2012
2013
RevPAR
RevPAR
$20.00
$18.00
$16.00
$14.00
2012
$12.00
2013
$10.00
2014
$8.00
T-12
$6.00
$4.00
$2.00
$0.00
Jan
Mar
Feb
May
Apr
Jul
Jun
Sep
Aug
Nov
Oct
Dec
Room Revenue
Room Revenue
2010
2011
2012
2013
2014
Trailing
12-Month
JAN
$53,722
$47,826
$36,443
$43,345
$40,476
$40,476
FEB
$53,487
$60,832
$49,153
$47,004
$49,297
$49,297
$600,000
MAR
$49,601
$67,089
$56,444
$58,326
$60,865
$60,865
$500,000
APR
$60,350
$76,238
$52,569
$58,594
$63,539
$63,539
$400,000
MAY
$86,961
$87,032
$60,075
$75,195
$70,297
$70,297
JUN
$87,863
$72,781
$69,098
$79,537
$74,144
$74,144
JUL
$92,528
$72,288
$72,121
$83,330
$71,349
$71,349
AUG
SEP
$69,528
$59,766
$56,665
$56,149
$64,590
$52,893
$65,217
$55,681
$72,632
$62,754
$72,632
$62,754
OCT
$69,898
$51,947
$51,271
$68,842
$63,006
$63,006
NOV
$53,859
$48,645
$44,221
$57,371
$45,474
$45,474
$62,760
$800,323
$52,028
$749,520
$45,672
$654,550
$50,000
$742,442
$47,904
$721,737
$47,904
$721,737
DEC
TOTAL
2014
$800,000
$700,000
$300,000
$200,000
$100,000
$0
2010
2011
2012
2013
2014
Trailing
12-Month
8
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
JACKSON, TN
INVESTMENT OVERVIEW
Investment Highlights
■ Located Between Nashville and Memphis
■ Huge Upside Potential
■ Ideally Located for Business Travelers
■ Surrounded by Fast Food Restaurants
■ Additional Income from Lounge in Hotel
■ Tremendous Add Value Opportunity
■ Lowest Price Per Key On the Market
■ 32 Percent Cash Flow After Debt Service
Marcus & Millichap is pleased to present the Old Hickory Inn hotel in Jackson, TN. The hotel features 144 rooms with
exterior corridors. The property has seen many improvements to the infrastructure and guest services during ownership.
The property was constructed in 1969 and and has been following an ongoing capital improvements plan. Since the
beginning of 2010, the current has spent over over $200,000 in capital improvements.
Located near Interstate I-40 between Nashville and Memphis, the hotel has the best location providing access to the two
most popular cities in Tennessee.
The hotel is the perfect choice for business travelers offering proximity to offices of Delta Faucet, Jackson General
Hospital, and Proctor & Gamble. The immediate area also provides: several retail strips, office buildings, gas stations,
KMart, and fast food restaurants.
With the lowest price per key in the market, this is an opportunity for a savvy investor to take over this property and
increase the occupancy through continued renovations, improving management, and rebranding the property.
10
Old Hickory Inn
JACKSON, TN
PROPERTY SUMMARY
The Offering
Property
Property Address
Assessor's Parcel Number
Old Hickory Inn
Jackson, TN 38305
057055O-C-00400
Site Description
Lot Size
Type of Ownership
Parking
1969 / 2010
152,460
Fee Simple
Self Parking
Handicapped Parking
Truck Parking
Yes
No
Room Breakdown
Double
Single
King
Physically Handicap (Included in Total)
Smoking (Included in Total)
78
13
47
3
63
11
Old Hickory Inn
JACKSON, TN
FEATURES AND AMENITIES
Common Area Features
■
■
■
■
■
■
■
■
■
■
■
■
Season Outdoor Pool
24 Hour Fitness Center
Complimentary Internet Access
Beach Bar
Evening Lounge/Night Club
Complimentary Breakfast
Laundry Facilities
Complimentary On-Site Self Parking & Disabled Parking
Meeting Rooms
Computer Station
Complimentary Tea & Coffee
Elevators
Room Amenities
■
■
■
■
■
■
■
■
Televisions with Satellite Channels
Phone
Desk
Iron & Ironing Board
Hair Dryer by Request
Air Conditioning
Daily Housekeeping
Private Bathroom
12
Old Hickory Inn
JACKSON, TN
PROPERTY PHOTOS
13
Old Hickory Inn
JACKSON, TN
INTERIOR PHOTOS
14
Old Hickory Inn
JACKSON, TN
AREA MAPS
Local Map
Regional Map
15
Old Hickory Inn
JACKSON, TN
AERIAL PHOTO
16
RECENT SALES
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES MAP
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
Old Hickory Inn
La Quinta Inn
Comfort Inn
Sleep Inn
County Inn & Suites
Fairfield Inn by Marriott
2401 Brick Church Pike
MainStay Suites
Best Western
Baymont Inn and Suites
Boutique Hotel Guest House
Wildwood Inn
LaQuinta Inn & Suites
Suburban Extended Stay Motel
Quality Inn
Super 8
6045 Macon Cove
Motel 6
18
Old Hickory Inn
RECENT SALES
JACKSON, TN
CAP RATE AND RRM
AVERAGE CAP RATE
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Subject
1
2
3
2
3
AVERAGE RRM
4.00
3.60
3.20
2.80
2.40
2.00
1.60
1.20
0.80
0.40
0.00
Subject
1
19
Old Hickory Inn
RECENT SALES
JACKSON, TN
REVPAR AND PRICE PER ROOM
AVERAGE PRICE/ROOM
60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Subject
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
20
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
Old Hickory Inn
Jackson, TN 38305
Subject Property
Total Rooms:
144
Sale Price:
$2,890,000
Year Built/Renovated:
1969/2010
Price/Room:
$20,069
Occupancy:
52.0%
CAP Rate:
13.84%
ADR:
$33.00
RRM:
4.00
RevPAR:
$14.03
Rack Rate:
La Quinta Inn
1
258 Harry Lane Boulevard
Knoxville, TN 37923
Close of Escrow:
4/15/82014
Sale Price:
Total Rooms:
130
Price/Room: $24,615
$3,200,000
Year Built:
1986
CAP Rate:
14.11%
Occupancy:
54.7%
RRM:
2.23
ADR:
$55.43
$1,550,000
Comments
Sold by Marcus & Millichap - Hospitality Group.
2
Comfort Inn
335 Howard Baker Highway
Pioneer, TN 37847
Close of Escrow:
3/25/2014
Sale Price:
Total Rooms:
62
Price/Room: $25,000
Year Built:
1989
CAP Rate:
5.17%
Occupancy:
ADR:
43.7%
$81.86
RRM:
2.38
Comments
Sold by Marcus & Millichap - Hospitality Group
21
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
3
4
5
Sleep Inn
200 Hospitality Place
Kingsport, TN 37663
Close of Escrow:
2/27/2014
Sale Price:
Total Rooms:
70
Price/Room: $32,000
$2,240,000
Year Built:
1999
CAP Rate:
4.91%
Occupancy:
56.7%
RRM:
2.73
ADR:
$56.46
$6,150,000
County Inn & Suites
1151 South Jefferson Avenue
Cookeville, TN 38506
Close of Escrow:
9/30/2014
Sale Price:
Total Rooms:
100
Price/Room: $61,500
Fairfield Inn by Marriott
911 Airport Center Drive
Nashville, TN 37214
Close of Escrow:
11/21/2014
Sale Price:
Total Rooms:
93
Price/Room: $55,914
Year Built:
2001
CAP Rate:
$5,200,000
N/A
22
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
6
7
8
2401 Brick Church Pike
Nashville, TN 37207
Close of Escrow:
10/13/2014
Sale Price:
$4,800,000
Total Rooms:
172
Price/Room: $27,907
Year Built:
1973
CAP Rate:
N/A
$4,600,000
MainStay Suites
107 Brentwood Boulevard
Brentwood, TN 37027
Close of Escrow:
2/10/2014
Sale Price:
Total Rooms:
100
Price/Room: $46,000
Year Built:
1997
CAP Rate:
N/A
Close of Escrow:
9/25/2014
Sale Price:
$3,687,000
Total Rooms:
71
Price/Room: $51,930
Year Built:
2008
CAP Rate:
Best Western
404 Hester Drive
White House, TN 37188
N/A
23
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
9
10
11
Baymont Inn and Suites
2230 Armory Drive
Murfreesboro, TN 37129
Close of Escrow:
10/2/2014
Sale Price:
$3,650,000
Total Rooms:
108
Price/Room: $33,796
Year Built:
1985
CAP Rate:
N/A
Boutique Hotel Guest House Wildwood Inn
401 Hemlock Street
Gatlinburg, TN 37738
Close of Escrow:
6/25/2014
Sale Price:
Total Rooms:
86
Price/Room: $42,069
$3,617,960
Year Built:
1982
CAP Rate:
N/A
$3,000,000
LaQuinta Inn & Suites
2428 Winfield Dunn Parkway
Kodak, TN 37764
Close of Escrow:
3/31/2014
Sale Price:
Total Rooms:
101
Price/Room: $29,703
Year Built:
1996
CAP Rate:
N/A
24
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
12
13
14
Suburban Extended Stay Motel
4015 Shurgard Way
Hermitage, TN 37076
Close of Escrow:
8/8/2014
Sale Price:
$3,450,000
Total Rooms:
127
Price/Room: $27,165
Year Built:
1999
CAP Rate:
N/A
Close of Escrow:
2/27/2014
Sale Price:
$2,200,000
Total Rooms:
62
Price/Room: $35,484
Year Built:
2004
CAP Rate:
N/A
Close of Escrow:
7/30/2014
Sale Price:
$1,875,000
Total Rooms:
70
Price/Room: $26,786
Year Built:
1994
CAP Rate:
Quality Inn
1116 Hwy 68
Sweetwater, TN 37874
Super 8
1558 Bear Creek Pike
Columbia, TN 38401
0.00%
25
Old Hickory Inn
RECENT SALES
JACKSON, TN
RECENT SALES
15
16
6045 Macon Cove
Memphis, TN 38134
Close of Escrow:
10/30/2014
Sale Price:
$1,400,000
Total Rooms:
37
Price/Room: $37,838
Year Built:
1994
CAP Rate:
N/A
$1,400,000
Motel 6
1321 Sycamore View Road
Memphis, TN 38134
Close of Escrow:
1/13/2014
Sale Price:
Total Rooms:
100
Price/Room: $14,000
Year Built:
1985
CAP Rate:
N/A
26
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
JACKSON, TN
COMPETITIVE PROPERTIES MAP
1)
2)
3)
4)
5)
Old Hickory Inn
La Quinta Inn & Suites Jackson
Quality Inn Jackson
Baymont Inn & Suites
Comfort Inn
Howard Johnson Inn
28
Old Hickory Inn
JACKSON, TN
GRAPHS
AVERAGE OCCUPANCY
50
45
40
35
30
25
20
15
10
5
0
Subject
La
Quinta
Inn
&
Suites
Jackson
Quality
Inn
Jackson
Baymont
Inn
&
Suites
Comfort
Inn
Howard
Johnson
Inn
Quality
Inn
Jackson
Baymont
Inn
&
Suites
Comfort
Inn
Howard
Johnson
Inn
AVERAGE DAILY RATES
70
60
50
40
30
20
10
0
Subject
La
Quinta
Inn
&
Suites
Jackson
29
Old Hickory Inn
JACKSON, TN
GRAPHS
AVERAGE RACK RATE
90
80
70
60
50
40
30
20
10
0
La
Quinta
Inn
&
Suites
Jackson
Quality
Inn
Jackson
Baymont
Inn
&
Suites
Comfort
Inn
Howard
Johnson
Inn
30
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
Jackson, TN 38305
Total Rooms:
144
Year Built/Renovated:
1969/2010
Occupancy:
52.0%
ADR:
RevPAR:
$33.00
$14.03
Subject Property
La Quinta Inn & Suites Jackson
1
2370 North Highland Avenue
Jackson, TN 38305
Total Rooms:
100
Year Built:
1985
Occupancy:
54.5%
AAA Rating:
2.5
ADR:
$65.83
Rack Rate:
$70.00
RevPAR:
$35.87
Comments
Smith Travel Research running 12-months Comp Set Occupancy & ADR.
Quality Inn Jackson
2
535 Wiley Parker Road
Jackson, TN 38305
Total Rooms:
104
Year Built:
1990
Occupancy:
54.5%
AAA Rating:
3
ADR:
$65.83
Rack Rate:
$60.50-$80.00
RevPAR:
$35.87
Comments
31
Old Hickory Inn
JACKSON, TN
Baymont Inn & Suites
3
465 Vann Drive
Jackson, TN 38305
Total Rooms:
60
Year Built:
1998
Occupancy:
54.5%
AAA Rating:
3
ADR:
$65.83
Rack Rate:
$70.00
RevPAR:
$35.87
Comments
Comfort Inn
4
40 International Cove
Jackson, TN 38305
Total Rooms:
49
Year Built:
1998
Occupancy:
54.5%
AAA Rating:
4
ADR:
$65.83
Rack Rate:
$90.00
RevPAR:
$35.87
Meeting Rooms:
1
Comments
Howard Johnson Inn
5
1292 Vann Drive
Jackson, TN 38305
Total Rooms:
67
Year Built:
2000
Occupancy:
54.5%
AAA Rating:
3.5
ADR:
$65.83
Rack Rate:
$74.00
RevPAR:
$35.87
Comments
32
MARKET OVERVIEW
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Market Highlights
Music city
■ The music industry provides jobs and supports a
large hospitality sector.
Diversifying economy
■ Major industries also include healthcare,
government, automotive, publishing, insurance and
finance.
Population growth
■ The population will increase at a faster pace than the
nation over the next five years.
Geography
The Nashville metro is located in the north-central portion of the state of Tennessee, in what is known as the
Central Basin. The area is underlain primarily by limestone from the Ordovician Period. The Cumberland River,
which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life.
Nashville-Davidson-Murfreesboro-Franklin, TN Metro
34
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Metro
The Nashville metro, with a population of more than
1.6 million, has 13 counties: Davidson, Smith, Macon,
Williamson, Cheatham, Sumner, Dickson, Robertson,
Cannon, Rutherford, Hickman, Trousdale, Maury and
Wilson. Nashville, the capital city, is also the largest in
the metro with 637,600 residents, followed by
Murfreesboro.
Largest Cities in Metro by Population
Infrastructure
Nashville
637,600
Three major interstate highways intersect in Nashville,
Murfreesboro
Franklin
117,600
I-40, I-24 and I-65. In addition, I-440 serves as an
67,600
Hendersonville
54,700
inner beltway circling the city, and I-840 is an outer
Smyrna
42,600
beltway. The region is home to numerous freight
Brentwood
40,700
carriers and truck terminals.
Airports
Air service to the region comes through the Nashville
International Airport and several general aviation
■ Nashville International Airport
■ General Aviation Airports
facilities, including the John C. Tune and Smyrna
Major Roadways
■ Interstates 24, 40, 65, 440 and 840
airports. Also, Nashville Air Cargo is an all-cargo
■ U.S. Routes 31, 41, 70 and 431
complex located at the Nashville International Airport.
Rail
■ Freight - CSX
The Port of Nashville, located on the Cumberland
■ Commuter - Music City Star Rail
River, provides full river barge access to the Gulf of
Port
■ Port of Nashville
Mexico. CSX Transportation has a major intermodal
rail yard servicing the Southeast U.S. located nearby. In
addition, the Music City Star, a passenger commuter
rail, runs between the city of Lebanon and downtown
Nashville and bus transit within the city is provided by
The Nashville Metro is:
■ 210 miles from Memphis
■ 249 miles from Atlanta
■ 290 miles from Indianapolis
■ 310 miles from St. Louis
the Metropolitan Transit Authority.
* Forecast
Sources: Marcus & Millichap Research Services, U.S. Census
Bureau, Experian
35
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Economy
For
many,
country
music
and
Nashville
are
synonymous. The metro is home to the Ryman
Auditorium,
Grand
Ole
Opry,
Country
Music
Television and Music Row. Music and entertainment
have helped to establish a large tourism industry.
Facilities such as the Gaylord Opryland Resort &
Convention Center, the Nashville Convention Center,
and the 1.2 million-square-foot Music City Center have
all played a role in expanding the hospitality and
tourism segment.
Although entertainment and tourism are vital to the
local economy, the economic base is much more diverse.
This is due, in part, to the area having one of the
nation’s lowest overall tax burdens and the availability of
incentives
to
attract
relocating
and
expanding
businesses. Other major industries in the metro include
healthcare, higher education, finance and insurance,
automobile production, printing and publishing, and
technology manufacturing. There are five fortune 500
companies headquartered in the region: HCA Holdings,
Dollar General, Community Health Systems, Vanguard
Health Systems and Tractor Supply Company.
Institutions of higher learning in the metro include
Middle
Tennessee
State
University,
Lipscomb
University, Belmont University, Vanderbilt University
and Tennessee State University. Education, healthcare
and
government
employment
help
to
diversify
Nashville’s employment base.
* Forecast
Sources: Marcus & Millichap Research Services, Bureau of
Economic Analysis, Moody's Analytics, U.S. Census Bureau,
Experian
36
Old Hickory Inn
JACKSON, TN
MARKET OVERVIEW
NASHVILLE
Labor
After outperforming the national rate of employment growth over the past 10 years, the Nashville metro is
expected to slow slightly through 2019. Many sectors of employment that posted the most robust growth during
the previous five years are now decelerating to a more sustainable pace, and all sectors except for manufacturing are
forecast to expand during this period. Jobs in construction are expected to grow by an average 3.1 percent annually
in the coming five years.
Currently, the trade, transportation and utilities sector is the largest provider of regional jobs. These industries
comprise 20 percent of Nashville’s entire employment base, or approximately 165,400 jobs. Many of these
positions are in retail. The professional and business services sector makes up another large share of Nashville
employment, representing about 16 percent of metro payrolls. While this sector registered impressive annual
growth of approximately 7.6 percent throughout the previous five years, jobs in this sector are now forecast to
expand by 3.0 annually. The education and health services segment comprises another 15 percent of employment.
Demand for these services is expected to increase throughout the foreseeable future, as the metro continuously
records population growth above the national average.
Other employment segments that will register impressive gains through 2019 are education and health services,
leisure and hospitality, information and the financial activities sectors. All of these industries are expected to grow
jobs at a pace in excess of 1 percent annually.
* Forecast
Sources: Marcus & Millichap Research Services, BLS, Moody's Analytics
37
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Employers
The list of major employers in Nashville is dominated
by education, healthcare and government entities. The
state of Tennessee, the Metropolitan NashvilleDavidson County Government, which includes the
public school system, and Vanderbilt University and
Medical Center each account for nearly 20,000 jobs. St.
Thomas Health Services, MedSolutions and HCA also
contribute to the growing healthcare industry. Other
large employers are financial and insurance companies,
which employ tens of thousands of workers in the
metro. Major companies include American General Life
Companies, Hylant Group, CNA, First Tennessee
Bank, Sun Trust Bank, Primus Automotive Financial
Services, and Asurion Insurance Services Inc.
Major Employers
Vanderbilt University and Medical Center
Kroger
Asurion
Saint Thomas Health Services
Nissan North America
Ryman
Hospitality
Properties,
formerly
Gaylord
HCA
Entertainment, is a large employer in the leisure and
Ryman Hospitality Properties
hospitality sector. The company operates the Grand Ole
Electrolux Home Products
Opry and the Ryman Auditorium. The entertainment
Cracker Barrel Old Country Store, Inc.
industry helped to spawn a large printing and
Dell, Inc.
publishing industry that focuses not only on countrywestern media, but Christian media as well. Large
companies include the United Methodist Publishing
House, Ingram Content Group, and R R Donnelley &
Sons Co.
Automobile production flourished when Nissan’s
Smyrna Plant began operations. The headquarters for
Nissan North American, Inc. moved to Franklin in
2006 and International Automotive Components, GM,
and Bridgestone are located in the region.
Dell and Amazon.com lead a growing list of technology
employers in the Nashville area.
* Forecast
Sources: Marcus & Millichap Research Services, BLS, Moody's
Analytics, Experian
38
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Demographics
The Nashville metro population is expected to rise at an
average annual rate of 1.4 percent during the next five
years, above the yearly U.S. average of 0.8 percent. The
growth will come from both in-migration and natural
increases, as the area has a large portion of families in
their childbearing years. Accordingly, the median age, at
36.1 years, is below the U.S. median of 37.4 years. The
number of residents in the 65-plus age bracket accounts
for just 11 percent of the metro’s population, well under
the average for the country. This bodes well for
Nashville’s future, as it illustrates the area’s large,
available employment pool on the verge of their most
successful earning years.
Nashville, which is home to more than 20 colleges and
universities and is the state capital, has a higher level of
education among residents than the national average.
Approximately 29.7 percent of the local population
older than 25 has earned a bachelor’s degree, as opposed
to 28.6 percent for the entire country. This is up from
just 25.7 percent in 2000. The metro also places high in
education attainment when compared with many other
Southeastern cities.
Elevated education levels often translate to higher
incomes. The metro’s median household income has
consistently placed just above the nationwide median.
Relatively strong incomes and the affordable median
home price of $181,000 have allowed more than 65
percent of households to own their home.
* Forecast
Sources: Marcus & Millichap Research Services, AGS, Experian,
Moody's Analytics, U.S. Census Bureau
39
Old Hickory Inn
MARKET OVERVIEW
JACKSON, TN
NASHVILLE
Quality Of Life
While music may be in Nashville’s blood, Music City
has a lot more to offer, including performing arts,
history,
cuisine,
professional
sports,
education
institutions, natural beauty and Southern charm.
Music is alive not only at the Grand Ole Opry, but also
at
the
Ryman
Auditorium,
Fontanel
Mansion,
Schermerhorn Symphony Center and the Tennessee
Performing Arts Center. For country music fans, there is
the Country Music Hall of Fame and Museum.
Performing arts include the Nashville Ballet, Nashville
Symphony, Nashville Opera Association, Tennessee
Repertory Theatre, Nashville Children’s Theatre, and
the ACT 1, Artists’ Cooperative Theatre.
Museums in the metro include the Tennessee State
Museum, the Vanderbilt University Fine Arts Gallery,
Frist Center for the Visual Arts, Cheekwood Botanical
Garden & Museum of Art, and the Carl Van Vechten
Gallery at Fisk University.
Sports enthusiasts can watch the Tennessee Titans of
the NFL, the NHL Nashville Predators and the
Nashville Sounds, which are a member of baseball’s
AAA Minor League.
For those who want to spend an afternoon outdoors,
one can take in the Parthenon, the world’s only replica
of the ancient Greek temple, which is located only 2
miles from downtown Nashville or Nashville Shores
Water Park and Marina.
* Forecast
Sources: Marcus & Millichap Research Services, National
Association of Realtors, Moody's Analytics, U.S. Census Bureau
The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or
implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including
estimates and forecasts, were used and may be subject to revision.
40
Old Hickory Inn
JACKSON, TN
Old Hickory Inn
JACKSON, TN
DEMOGRAPHIC REPORT
2000 Population
1 Mile
5,686
3 Miles
31,102
5 Miles
61,719
2010 Population
2014 Population
2019 Population
5,914
5,871
5,901
34,478
34,791
35,562
66,575
67,514
69,242
2000 Households
2010 Households
2014 Households
2019 Households
2,550
2,649
2,632
2,654
12,525
13,775
13,923
14,364
23,877
25,511
25,902
26,736
2.27
2.35
2.45
5,150
25,655
41,276
2000 Owner Occupied Housing Units
2000 Renter Occupied Housing Units
2000 Vacant
36.48%
54.57%
8.95%
56.03%
37.11%
6.86%
55.49%
37.05%
7.46%
2014 Vacant
34.39%
65.61%
9.05%
54.23%
45.77%
9.59%
56.72%
43.28%
10.31%
2019 Vacant
34.19%
65.81%
9.09%
54.05%
45.95%
9.85%
57.08%
42.92%
10.54%
25.9%
11.5%
12.9%
15.9%
17.3%
7.2%
3.1%
2.0%
1.7%
1.1%
1.4%
16.5%
13.2%
12.9%
14.3%
19.0%
9.3%
5.4%
2.8%
3.0%
1.6%
2.0%
19.2%
13.2%
11.4%
13.8%
17.3%
9.6%
6.1%
3.0%
2.8%
1.5%
2.1%
2014 Median Household Income
2014 Per Capita Income
$34,731
$23,125
$42,442
$25,974
$41,394
$24,695
2014 Average Household Income
$50,780
$63,015
$62,448
2014 Average Household Size
2014 Daytime Population
$ 0 - $14,999
$ 15,000 - $24,999
$ 25,000 - $34,999
$ 35,000 - $49,999
$ 50,000 - $74,999
$ 75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 +
Demographic data © 2010 by Experian/Applied Geographic Solutions.
42
Old Hickory Inn
JACKSON, TN
SUMMARY REPORT
Geography: 5 miles
Population
In 2014, the population in your selected geography is 67,513. The population has changed by 9.38% since 2000. It is estimated that
the population in your area will be 69,242 five years from now, which represents a change of 2.55% from the current year. The
current population is 46.83% male and 53.16% female. The median age of the population in your area is 34.9, compare this to the
Entire US average which is 37.3. The population density in your area is 859.18 people per square mile.
Households
There are currently 25,902 households in your selected geography. The number of households has changed by 8.48% since 2000. It
is estimated that the number of households in your area will be 26,735 five years from now, which represents a change of 3.21%
from the current year. The average household size in your area is 2.44 persons.
Income
In 2014, the median household income for your selected geography is $41,393, compare this to the Entire US average which is
currently $51,972. The median household income for your area has changed by 14.04% since 2000. It is estimated that the median
household income in your area will be $49,245 five years from now, which represents a change of 18.96% from the current year.
The current year per capita income in your area is $24,695, compare this to the Entire US average, which is $28,599. The current
year average household income in your area is $62,447, compare this to the Entire US average which is $74,533.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 49.90% White, 44.61% Black, 0.03% Native American and 1.28%
Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and
5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.19% of the current year
population in your selected area. Compare this to the Entire US average of 17.13%.
Housing
In 2000, there were 14,317 owner occupied housing units in your area and there were 9,559 renter occupied housing units in your
area. The median rent at the time was $409.
Employment
In 2014, there are 41,276 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 59.12% of employees are employed in white-collar occupations in this geography, and 40.90% are employed in blue-collar
occupations. In 2014, unemployment in this area is 8.64%. In 2000, the average time traveled to work was 19.2 minutes.
43
Old Hickory Inn
JACKSON, TN
POPULATION DENSITY
Number of people living in a given area per square mile.
44
Old Hickory Inn
JACKSON, TN
EMPLOYMENT DENSITY
The number of people employed in a given area per square mile.
45
Old Hickory Inn
JACKSON, TN
AVERAGE HOUSEHOLD INCOME
Average income of all the people 15 years and older occupying a
single housing unit.
46
Old Hickory Inn
JACKSON, TN
TRAFFIC COUNTS
Traffic Count data © 2010 by TrafficMetrix. All rights reserved.
Two-way, average daily traffic volumes.
47
Old Hickory Inn
JACKSON, TN
OFFERING MEMORANDUM
Andy Kawatra
Associate
Encino Office
License: CA: 01881930
Tel: (818) 212-2737
Fax: (818) 212-2710
Andy.Kawatra@marcusmillichap.com
www.marcusmillichap.com/AnubhavKawatra
Anne Williams
Broker
Marcus & Millichap REIS of Memphis
License: TN: 255603
Tel: (901) 620-3600
Fax: (901) 620-3610
Offices Throughout the U.S. and Canada
www.MarcusMillichap.com

Old Hickory Inn

Transcription

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