COMFORT SUITES SOUTH PADRE ISLAND 912 Padre Boulevard South Padre Island, TX 78597

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1 912 Padre Boulevard South Padre Island, TX

2 EXECUTIVE SUMMARY VITAL DATA TTM JUNE 2017* YEAR 1 Price $7,500,000 CAP Rate 8.59% 9.35% PIP $222,000 Net Operating Income $674,400 $701,457 Down Payment 21.26% / $1,594,254 Net Cash Flow After Debt Service 11.83% / $188, % / $215,633 Loan Amount $6,283,600 Total Return 18.84% / $300, % / $327,483 Loan Type Proposed New Interest Rate / Amortization 6.00% / 25 Years Price/Room $101,351 Ownership Type Fee Simple Number of Rooms 74 Rentable Square Feet 47,798 Number of Buildings 1 Number of Stories 4 Year Built 2000 Lot Size 1.32 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Tax Assessor 396 Texas Pack Inc 385 Pearl South Padre 175 Blackbeards Restaurant 170 Sutherlands Express 151 H-E-B Food Store Isla Grand Beach Resort 150 Walmart 140 Bahia Mar Resort 100 Garriga Elementary School 81 Long Island Village 81 Port Isabel Junior High School 81 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 322 3,625 8, Census Pop 311 3,498 8, Estimate HH 165 1,850 3, Census HH 158 1,768 3,479 Median HH Income $57,410 $54,983 $47,681 Per Capita Income $48,858 $44,416 $29,318 Average HH Income $95,562 $87,035 $71,258 # 2

3 INVESTMENT OVERVIEW The Comfort Suites South Padre Island is a 74 room, interior corridor, four-story hotel that was built in This asset sits on approzimately, acres of land and offers guests beach access from the hotel. With recent renovations, this hotel has a minimal estimated PIP. The Comfort Suites is currently being offered at $7,500,000, which is roughly $100,000 per room. The current June 2017 Trailing Twelve Months Net Operating Income, which includes various expense adjustments and management fee, is $674,000. The expense adjustments are mainly composed of Capital Expenditures, which will not be carried over to new owner. This offering presents itself as a great opportunity for a new owner to acquire a nearly turnkey investment opportunity in a high-barrier-to-entry market with stable historic revenues. All property tours are to be coordinated with Marcus & Millichap only. INVESTMENT HIGHLIGHTS 74-room, Interior Corridor, Four-Story Hotel Hotel has private beach access. Located Beachside of Padre Boulevard Stable Historical Revenue Performance Popular Spring Break Destination for College Students, Texas and Mexican Nationals SpaceX plans Big Development in Boca Chica Village Recent Renovations Completed; Minimal Estimated PIP 3

4 PROPERTY OVERVIEW Property Overview: The Comfort Suites is located in South Padre Island, Texas. The hotel features common area amenities such as bus/car parking, guest laundry facilities, meeting facilities, outdoor heated swimming pool, and an outdoor whirlpool/hot tub. The guest rooms include a flat screen television, refrigerator, and microwave. Location Overview: South Padre Island, Texas is a barrier island with 34 miles of beach, and lies between the Lower Laguna Madre and Gulf of Mexico in Cameron County. Also, the island is part of the Brownsville-Harlingen metropolitan statistical area. South Padre Island is known as the number one spring break destination in the south and attracts approximately 50,000 students in March per year. The city hosts the Texas International Fishing Tournament (TIFT), SPI Bike Fest, and the South Padre International Music Festival with all attracting more than 60,000 attendees combined. Comfort Suite South Padre Island is within four miles of the South Padre Island Convention Center, and two miles of Schlitterbahn, Isla Blanca Park, Gravity Adventure Park, Port Isabel Museums, and has direct beach access to the South Padre Island beach. Furthermore, it is located 30 miles from Mexico and 20 miles from the Brownsville/South Padre Island International Airport. Common Area Amenities Bus/Truck/Car Parking Guest Laundry Facilities Meeting Facilities Outdoor Heated Swimming Pool Outdoor Whirlpool/Hot Tub Guest Room Amenities Flat Screen Television Refrigerator Microwave # 4

5 PROPERTY SUMMARY THE OFFERING Property Comfort Suites South Padre Island Price $7,500,000 Property Address 912 Padre Boulevard, South Padre Island, TX SITE DESCRIPTION Number of Rooms 74 Year Built/Renovated 2001 CONSTRUCTION Foundation Concrete Framing Wood Exterior Stucco Parking Surface Concrete Roof Flat MECHANICAL HVAC [PTAC in Rooms] Elevators [Elevators] Fire Protection [Smoke Detectors/Sprinkler] CHANGE TO FRANCHISE Application Fee $50,000 Minimum Parent Company Choice Hotels International Term December 2015-December 2035 Royalty / Marketing Fee 5% of GRR / 3.5% of GRR FIRST TRUST DEED PROPOSED FINANCING Loan Amount $6,283,600 Loan Type Proposed New Interest Rate 6.00% Amortization Loan Term 25 Years 25 Years Loan to Value 84% Debt Coverage Ratio 1.44 SECOND TRUST DEED Loan Type All Cash 5

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7 PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. FOR MORE INFROMATION CALL: Andrew Frosch Senior Associate, National Hospitality Group Office: (713) Mobile: (281) Roberto Arzola Senior Associate, National Hospitality Group Office: (210) Mobile: (956)