SEAWORLD RAMADA LIMITED caacre.com

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1 3747 MIDWAY DRIVE, SAN DIEGO CA INVESTMENT OFFERING SOUTHERN CALIFORNIA COASTAL 60+ ROOM HOSPITALITY OFFERING MIKE CONGER Principal BRE Lic # BRIAN JENKINS Principal Brian@caacre.com BRE Lic # caacre.com Exclusive Debt Advisor: DAVID HAMILTON PRINCIPAL D: M: DRE # DHAMILTON@PSRS.COM

2 THE OFFERING Commercial Asset Advisors, as the exclusive marketing advisor to the Seller, is pleased to present to qualified investors and owner-users, the outstanding opportunity to acquire the Seaworld Ramada Limited, a 63 room class B hospitality property totaling approximately 36,155 square feet square feet. Originally built in 1959, ownership has invested over $500,000 in renovations since its purchase in The hotel is currently branded as a Ramada Limited with essential amenities that include free WiFi, free parking, free hot breakfast, and guest laundry facilities. The updated and contemporary carpet-free guest rooms feature granite counter tops, mini-refrigerator, flat-screen HDTV, and plush bedding, while suites feature jetted hot tubs. The subject property is located on the south side of Midway drive and is within the City of San Diego s Sports Arena submarket. The Midway area is centrally located among such regional recreational resource areas as the Cabrillo National Monument, the Ocean Beach Recreational area, the Old Town State recreation area and the Mission Bay Aquatic Park. Nearby attractions include miles of beaches, Belmont park, the San Diego sports arena and it is also one of the closest hospitality properties to Sea World San Diego animal theme park which averaged approximately 3.35 million annual visitors over the last two years.

3 VALUE ADD OPPORTUNITY This one of a kind offering allows an investor to acquire a hospitality asset with maximum flexibility in a highly sought-after community in coastal southern California. A soon to be expiring Ramada Limited Franchise agreement gives the savvy investor or user the ability to re-brand the property to a more attractive and/or profitable flag, and add even more value with the potential for associated subsidized property upgrades.

4 PROPERTY DESCRIPTION PROJECT Seaworld Ramada Limited 3747 Midway Drive San Diego CA PROPERTY TYPE Two Story Exterior Corridor Hotel PARCEL NUMBER BUILDING SIZE ±36,155 SF LOT SIZE 0.83 Acres YEAR BUILT 1959 REMODELED 2011 ROOMS 60+ (5 ADDITIONAL ROOMS MAY BE ADDED) ZONING CC-1-3 (San Diego) Seaworld Ramada Limited is composed of a two-story, wood frame, exterior corridor hotel with a total of 63 rooms. Originally built in 1959, the seller has invested $500,000 in renovations since The hotel is equipped with essential amenities that include free WiFi, free parking, free hot breakfast, and guest laundry facilities. The updated and contemporary carpet-free guest rooms feature granite counter tops, mini refrigerator, flat-screen HDTV, and plush bedding, while suites feature jetted hot tubs.

5 RAMADA ~ WYNDHAM WORLDWIDE CORPORATION Ramada is a large multinational hotel chain owned by Wyndham Worldwide Corporation. They operate more than 800 hotels across 63 countries under the Ramada brand. The chain offers different hotel tiers based on price and services offered. Ramada Limited budget-oriented properties, typically with no on-site restaurant, though deluxe continental breakfast are standard. Some Ramada Limiteds consist of rooms mixed with suites. Wyndham Worldwide Corporation (NYSE: WYN) boasts a market capitalization of nearly 11 billion and is considered investment grade by the major rating agencies (Moody s Baa3; S&P BBB-). RAMADA AGREEEMENT The existing franchise agreement can be terminated January Due to the elimination of the Ramada Limited brand, a potential franchisee may be able to exit the agreement early or negotiate favorable terms with Wyndham. The ability to re-brand the property would allow one to add even more value. A new franchise relationship could reduce the current royalty profile and have potential for subsidized property upgrades, in addition to the ability to operate the property as an independent.

6 Seaworld Ramada Limited is located on the south side of Midway drive and is within the City of San Diego s Midway/Pacific Highway Corridor Community Plan. The community encompasses approximately 800 acres and is comprised of two basic elements: the central Midway area and the narrow, linear-shaped Pacific Highway Corridor. This area is located in the western portion of the geographic center of the City of San Diego. It is bounded on the north by Interstate 8 (I-8), on the east by I-5, on the south by Laurel Street, and on the west by the San Diego Unified Port District properties and the Marine Corps Recruit Depot and Naval Training Center sites. The Midway area is centrally located among such regional recreational resource areas as the Cabrillo National Monument, the Ocean Beach Recreational area, the Old Town State recreation area and the Mission Bay Aquatic Park. The Pacific Highway Corridor area is a major access way to the San Diego International Airport and is a gateway to the Centre City area. The Ramada is well-situated within easy range of many attractions, including SeaWorld, Mission Bay Park, Point Loma, beautiful beaches, numerous restaurants, and Valley View Casino Center.

7 SAN DIEGO HOSPITALTIY MARKET Tourism is San Diego s second largest traded industry (behind Research/Technology/Innovation), employing over 194,000 people 13% of the jobs in the county. Travelers to the county spend $10.8 billion at San Diego businesses and produce $304 million in transient occupancy tax revenues. In 2017, there were 35 million visitors to San Diego, of which more than 17.6 million were overnight and almost 17.4 million were day visitors. San Diego has approximately 549 hotel, motel, bed & breakfast and casino hotel properties, with 61,456 rooms available to visitors. San Diego County s average hotel occupancy was 77.3% and the daily room rate averaged $ (Source: STR). The subject property surpassed the County s occupancy number with a running 12-month percentage of 79.5%. However, as a budget oriented property, the subject experienced a lower ADR of $ Official 2018 Year-End numbers have yet to be released, but hotel room demand growth outpaced room supply growth in every quarter, resulting in an occupancy of 78.3%, beating the previous forecast levels in three of four quarters, and reversing expectations that the third and fourth quarters would return negative growth. Average daily room rate (ADR) growth is expected to surpass June estimates, registering 3.3% again in 2018, supported by 5.4% growth in Q4. Revenue per available room (RevPAR) also experienced increasing strength over the course of 2018 and is expected to average 5.8% growth in the second half of the year. Overall, the San Diego hotel sector is expected to continue to grow in accordance with recent demand but be weighed down by broader economic trends. An occupancy rate of 78.0% in 2019, 77.0% in 2020, and 76.3% on average from 2021 to 2023 is forecasted. ADR growth is expected at 2.5% in both 2019 and 2020, before softening to 2.1% on average in 2021 and 2022, and finally falling to 0.3% growth in RevPAR growth is forecasted at 2.1% and 1.3% in 2019 and 2020, respectively, before averaging 1.6% in and stagnating in (Source: San Diego Tourism Authority Travel Forecast Dec 2018)

8 REGIONAL POINTS OF INTEREST

9 NEIGHBORHOOD MAP 3747 MIDWAY DR SPORTS ARENA BLVD MIDWAY DR CAMINO DEL RIO N MIDWAY DR

10 SPORTS ARENA BLVD MIDWAY DRIVE

11 SITE PLAN 316 ADDITIONAL PLANS AVAILABLE UPON REQUEST

12 PLAT MAP

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16 COMMUNITY PLAN UPDATE The Midway-Pacific Highway Community Plan was adopted by the San Diego City Council on September 17, The plan is not effective in the Coastal Zone until the community plan is certified by the California Coastal Commission. Conceptual renderings have been developed to illustrate the vision and plan policies for the community villages. Development incorporating parking structures; can accommodate shared parking arrangements. Park or plaza centrally located within village. Development facing park/plaza. Horizontal mixed-use, retail along main street and residential fronting park/plaza. KEMPER ST The population of the area, is projected to rise from 4,600 to 27,000 because land with large commercial projects would be re-zoned for housing, spiking the number of units from just under 2,000 to more than 11,000. The 52-year-old arena could remain as it is, be replaced by mixed-use development or be replaced by a more modern arena, although any new structure higher than 30 feet would require voter approval in a referendum. In addition, the plan includes a bay-to-bay trail for bicyclists and pedestrians, which would connect San Diego Bay at Laurel Street to Mission Bay at the San Diego River and Interstate 8. SPORTS ARENA BLVD The plan envisions the community becoming a more walkable mixed use and economically vibrant submarket. The subject property will benefit from the Increase in population and density in the immediate area. Parking located behind buildings to support pedestrian activity. Pedestrian spaces that can also support outdoor markets. Development with active ground Network of new streets provides floor fronting linear park connectivity within the superblock Midway - Pacific Highway Community Plan LU-29

17 DEMOGRAPHICS

18 FINANCIALS PROFIT AND LOSS (July June 2018) GROSS INCOME $ 1,757,493 HOTEL COSTS July June 2018 Proforma Year 1 Advertising and Promotion 0.08% $ 1,355 $ 1,355 Franchise & Royalities*** 7.74% $ 136,009 $ 52,725 Travel - Commissions 4.63% $ 81,373 $ 81,373 OCCUPANT COSTS Hotel Expense 0.78% $ 13,674 $ 13,674 Breakfast Supplies 4.35% $ 76,535 $ 76,535 Guest Supplies 0.93% $ 16,348 $ 16,348 Laundry 0.90% $ 15,818 $ 15,818 EMPLOYEE COSTS Payroll Tax Expense 5.10% $ 89,653 $ 89,653 Payroll Wages 18.23% $ 320,315 $ 320,315 OTHER Merchant Account Fees 0.59% $ 10,283 $ 10,283 Legal & Accounting 0.18% $ 3,197 $ 3,197 Other Expenses 0.30% $ 5,194 $ 5,194 Repairs and Maintenance Repair and Maintenance Budget (1% of Gross)* 1.00% $ 17, $ 17, Landscaping, Groundskeeping, Pest Control 0.22% $ 3,923 $ 3,923 Repairs & Maintance - Equipment 0.16% $ 2,839 $ 2,839 UTILITIES Cable & Internet 0.96% $ 16,840 $ 16,840 Telephone 0.33% $ 5,841 $ 5,841 Utilities 5.39% $ 94,689 $ 94,689 INSURANCE Insurance Expense 0.82% $ 14,494 $ 14,494 Insurance- Property 0.15% $ 2,673 $ 2,673 Workers Compensation Insurance 1.04% $ 18,193 $ 18,193 TAXES Tax and License 0.21% $ 3,688 $ 3,688 Occupancy Tax Expense 5.91% $ 103,916 $ 103,916 Property Tax** BUYER TO ASSUME BUYER TO ASSUME Total Expenses 60.00% $ 1,054,423 $ 971,139 NET OPERATING INCOME 40.00% $ 703,070 $ 786,353 *Budgetary Number ** Milage rate of % plus $ of fixed assessements ***Rebranding to Greentree

19 ASSUMABLE FINANCING REMAINING LOAN AMOUNT APPROX $3,100,000 INTEREST RATE 4.875% AMORITIZATION 25 YEARS TERM REMAINING ±APPROX. 24 YEARS (APRIL 2043) REMAINING FIXED INTEREST RATE TERM APPROX. 6 YEARS (APRIL 2025) EXISTING MONTHLY PAYMENT $18,475 Call David Hamilton for additional details and financing options! Exclusive Debt Advisor: DAVID HAMILTON PRINCIPAL D: M: DRE # DHAMILTON@PSRS.COM

20 MARKET REPORT (SAN DIEGO 2017)

21 MARKET REPORT (SAN DIEGO OCT-2018)

22 Market Report (Property vs. Competitive Set)

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24 MIKE CONGER Principal BRE Lic # BRIAN JENKINS Principal Brian@caacre.com BRE Lic # caacre.com