Skip to main content

Hotel-Motel

Limited Service Hotel Conversion Waterloo

226 W 5th St, Waterloo, IA 50701

Listing Price: $1,700,000

Cap Rate
8.10%
Number of Rooms
68
RevPAR
$20
Gross SF
49,119
Price/Room
$25,000
RRM
2.87
Price/Gross SF
$34.61
Year Built
1964

Investment Overview

Marcus & Millichap is proud to have been chosen to exclusively represent a 69-room limited-service Waterloo hotel located at 226 W 5th Street. With a prime downtown location, this property is ideally located for a limited-service hotel or a downtown multifamily conversion. Currently operating under the Econo Lodge flag under parent company Choice, this hotel has been overlooked and under managed for the last 4 years. The hotel has around 3,000 square feet on the ground level that could be converted into a retail coffee shop, café, or convenience store tenant. The asset has two strategies for the next owner: renovate and continue hotel operations; or, convert the existing structure into multifamily or senior living. 1.) This is a perfect opportunity for an owner operator to come into a solid concrete constructed hotel, renovate, move to a more competitive flag and double if not triple the revenue for year 1/2. Lease up the vacant retail space on the bottom floor. Again, this site is one of two downtown Waterloo hotels. Waterloo invested over $50 million dollars into the Waterloo Convention Center 40,000-square foot center hosts numerous conventions, events, and banquets throughout the year, with space to provide seating for up to 2,000 people. 2.) The hotel layout and room design make a senior living or multifamily conversion very achievable with an expected unit count above 50. With the location being right downtown, this would be one of the most attractive multifamily properties in the market. Stabilized as a multifamily property with market rents, a disposition near $4.5 million in 2-3 years could be achievable. The city is aware of the transaction and would be willing to offer a range of incentives for the conversion including TIF.

Investment Highlights

  • Prime Downtown Location | Opportunity Zone | Solid Concrete Construction | Covered Parking
  • 5 Stories | 68 Rooms | 26 Two Room Suites
  • UPSIDE POTENTIAL: 3,000 SQFT Retail Vacant | Up-Flag Possibilities | City Support for Multifamily/Senior Living Redevelopment
  • Conversion Opportunity with City Financial Support

Exclusively Listed By

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) IA: B63379000

    Iowa

Financing By

Hotel-Motel

Limited Service Hotel Conversion Waterloo

Listing Price: $1,700,000

Cap Rate
8.10%
Number of Rooms
68
RevPAR
$20
Gross SF
49,119
Price/Room
$25,000
RRM
2.87
Price/Gross SF
$34.61
Year Built
1964

Investment Highlights

  • Prime Downtown Location | Opportunity Zone | Solid Concrete Construction | Covered Parking
  • 5 Stories | 68 Rooms | 26 Two Room Suites
  • UPSIDE POTENTIAL: 3,000 SQFT Retail Vacant | Up-Flag Possibilities | City Support for Multifamily/Senior Living Redevelopment
  • Conversion Opportunity with City Financial Support

Investment Overview

Marcus & Millichap is proud to have been chosen to exclusively represent a 69-room limited-service Waterloo hotel located at 226 W 5th Street. With a prime downtown location, this property is ideally located for a limited-service hotel or a downtown multifamily conversion. Currently operating under the Econo Lodge flag under parent company Choice, this hotel has been overlooked and under managed for the last 4 years. The hotel has around 3,000 square feet on the ground level that could be converted into a retail coffee shop, café, or convenience store tenant. The asset has two strategies for the next owner: renovate and continue hotel operations; or, convert the existing structure into multifamily or senior living. 1.) This is a perfect opportunity for an owner operator to come into a solid concrete constructed hotel, renovate, move to a more competitive flag and double if not triple the revenue for year 1/2. Lease up the vacant retail space on the bottom floor. Again, this site is one of two downtown Waterloo hotels. Waterloo invested over $50 million dollars into the Waterloo Convention Center 40,000-square foot center hosts numerous conventions, events, and banquets throughout the year, with space to provide seating for up to 2,000 people. 2.) The hotel layout and room design make a senior living or multifamily conversion very achievable with an expected unit count above 50. With the location being right downtown, this would be one of the most attractive multifamily properties in the market. Stabilized as a multifamily property with market rents, a disposition near $4.5 million in 2-3 years could be achievable. The city is aware of the transaction and would be willing to offer a range of incentives for the conversion including TIF.

Exclusively Listed By

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): IA: B63379000

    Iowa

Financing By

MM Texture Background
MM Textured Background Lower