Press Releases
Marcus & Millichap Arranges Sale and Financing of North Dakota Hotel & Suites
October 23, 2024
KILLDEER, N.D., Oct. 23, 2024 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Cobblestone Hotel & Suites Killdeer, a 44-room hotel and eight-unit apartment property located at 158 Rodeo Drive in Killdeer, North Dakota. The property sold for $4 million. Marcus & Millichap Capital Corporation (MMCC), a subsidiary of Marcus & Millichap, arranged $3.4 million in acquisition financing.
“The Cobblestone Hotel & Suites Killdeer is strategically positioned to capitalize on the growing demand from the oil and gas sector, as well as business travelers in the region,” said Joseph Ferguson, senior associate. “Our team successfully sourced a buyer from Washington state and also secured financing through MMCC, ensuring a smooth transaction for both parties.”
Ferguson, Jon Ruzicka, Jake Erickson, Jared Plamann and Reed Gizinski, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, Zipper Enterprises, Inc. Ruzicka and Ferguson procured the buyer, GBAAZ, LLC.
The MMCC team was led by Dallas-based managing director Pete Fehlman and associate director Jake Marshall. The team worked on behalf of Jay Takhar with GBAAZ to secure 85% loan-to-cost SBA 7(a) financing at a rate of WSJ Prime plus 1% (adjusted quarterly).
“Through a comprehensive marketing process that involved local banks as well as national SBA lenders, MMCC was able to produce five term sheets at the proceeds ask for this transaction before ultimately proceeding with a relationship lender who provided the most competitive pricing. The SBA 7(a) program continues to be an attractive financing source for eligible hotel owners looking to minimize required equity contribution,” added Fehlman.
Built in 2012, the Cobblestone Hotel & Suites has experienced significant recent upgrades ensuring modern and appealing accommodations. Killdeer's status as an oil town and its proximity to key drilling sites creates a consistent demand for both hospitality and residential lodging, driven by the area's industrial activities in addition to seasonal tourism. The property’s residential component consists of two four-unit buildings with 1,700-square-foot apartments, each featuring two bedrooms, one bathroom and access to eight garage stalls.
“The Cobblestone Hotel & Suites Killdeer is strategically positioned to capitalize on the growing demand from the oil and gas sector, as well as business travelers in the region,” said Joseph Ferguson, senior associate. “Our team successfully sourced a buyer from Washington state and also secured financing through MMCC, ensuring a smooth transaction for both parties.”
Ferguson, Jon Ruzicka, Jake Erickson, Jared Plamann and Reed Gizinski, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, Zipper Enterprises, Inc. Ruzicka and Ferguson procured the buyer, GBAAZ, LLC.
The MMCC team was led by Dallas-based managing director Pete Fehlman and associate director Jake Marshall. The team worked on behalf of Jay Takhar with GBAAZ to secure 85% loan-to-cost SBA 7(a) financing at a rate of WSJ Prime plus 1% (adjusted quarterly).
“Through a comprehensive marketing process that involved local banks as well as national SBA lenders, MMCC was able to produce five term sheets at the proceeds ask for this transaction before ultimately proceeding with a relationship lender who provided the most competitive pricing. The SBA 7(a) program continues to be an attractive financing source for eligible hotel owners looking to minimize required equity contribution,” added Fehlman.
Built in 2012, the Cobblestone Hotel & Suites has experienced significant recent upgrades ensuring modern and appealing accommodations. Killdeer's status as an oil town and its proximity to key drilling sites creates a consistent demand for both hospitality and residential lodging, driven by the area's industrial activities in addition to seasonal tourism. The property’s residential component consists of two four-unit buildings with 1,700-square-foot apartments, each featuring two bedrooms, one bathroom and access to eight garage stalls.
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About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.
