QUALITY INN CENTRALIA CHEHALIS - 1003 Eckerson Rd Centralia, WA 98531 - Offering Memorandum
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Offering Memorandum
QUALITY INN CENTRALIA CHEHALIS
1003 Eckerson Rd • Centralia, WA 98531
1
NON-ENDORSEMENT AND DISCLAIMER NOTICE
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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
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.
QUALITY INN CENTRALIA CHEHALIS
Centralia, WA
ACT ID ZAA0140294
2
QUALITY INN CENTRALIA CHEHALIS
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01
Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Historical P&L
MARKET OVERVIEW 03
Market Analysis
Demographic Analysis
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QUALITY INN CENTRALIA CHEHALIS
INVESTMENT
OVERVIEW
4
QUALITY INN CENTRALIA CHEHALIS
OFFERING SUMMARY
EXECUTIVE SUMMARY
VITAL DATA
CURRENT
MAJOR EMPLOYERS
Price $3,500,000 CAP Rate 9.01%
Price/Room $59,322 Net Operating Income $315,272
Ownership Type Fee Simple EMPLOYER # OF EMPLOYEES
Number of Rooms 59 Providence Hospital 700
Square Feet 29,400 Great Wolf Lodge 500
Number of Buildings 1 Providnce Hlth Srvcs-Wshington 446
Number of Stories 2 Great Wolf Rsorts Holdings Inc 303
Year Built 1986 Juvenile Rehabilitation Admin 300
Lot Size 1.56 acre(s) Veterans Affairs US Dept 260
Sterling Medical Corporation 228
Sears 200
Walmart 200
Department Crrctons Wash State 191
Centralia School District 183
Processing Plant 172
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 6,766 21,538 28,235
2010 Census Pop 6,620 21,048 27,471
2018 Estimate HH 2,773 8,588 11,216
2010 Census HH 2,725 8,442 10,974
Median HH Income $45,581 $42,277 $44,012
Per Capita Income $23,091 $22,450 $23,089
Average HH Income $55,772 $55,690 $57,138
#5
QUALITY INN CENTRALIA CHEHALIS
OFFERING SUMMARY
INVESTMENT OVERVIEW
Quality Inn hotel in Centralia, Washington is conveniently located midway between Portland and Seattle, offering easy access to Centralia Factory Outlets and other
attractions like Great Wolf Lodge Water Park, Riverside Golf Club, Lucky Eagle Casino, Mount St Helens, Centralia College, NW Sports Hub Indoor Sports and Events
Arena. Hotel is also walking distance to close by Mexican, Thai, Chinese, Pizza, and Fast food restaurants. Guests of the Quality Inn are invited to relax at the seasonal
outdoor pool and spa or get work done in the business center. Other amenities include free hot breakfast, free daily newspaper, free parking on premises and all guest
rooms offer a coffee maker, hair dryer, iron and ironing board.
Centralia is well positioned between Portland and Seattle off Interstate 5, the West Coast's major trade corridor, and is a strategic business hub. Centralia is the largest
city in Lewis County with over 17,000 residents. Its close proximity to Seattle and Portland, with their international airports and the deep-water Port of Grays Harbor,
making it easy to move goods in and out of the community.
A major contributor to the Centralia economy is the Port of Centralia. The Port has worked with many companies to relocate to Centralia which include: Rogers Machinery
Company, Inc., Dick's Brewing Company, Scot Industries, Michael's Distribution Center, Lineage Logistics, Lowe Distribution Center, Sierra Pacific Industries, and Mega
Arms.
The Port of Centralia is currently working on a major retail project called Centralia Station. It is planned as a multi use development with retail space, office space, medical
facilities, restaurants, tech warehouse space and sports fields. Companies have chosen to locate in Centralia for many reasons including quality of life, location on the
Interstate 5 corridor, lower cost of doing business, and workforce development programs.
INVESTMENT HIGHLIGHTS
▪ Centrally Located on I-5 Between Seattle and Portland
▪ Ideal Owner Operator
▪ Upside to push Occupancy and ADR (currently rank last in comp set)
▪ YTD May 2019 is up 26% in RevPar
▪ SBA and Conventional Financing Available
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QUALITY INN CENTRALIA CHEHALIS
OFFERING SUMMARY
PROPERTY SUMMARY
THE OFFERING
Property Quality Inn Centralia Chehalis
Price $3,500,000
Property Address 1003 Eckerson Rd, Centralia, WA
SITE DESCRIPTION
Number of Rooms 59
Year Built/Renovated 1986
Ownership Type Fee Simple
Lot Size 1.56 acre(s)
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QUALITY INN CENTRALIA CHEHALIS
REGIONAL MAP
8
QUALITY INN CENTRALIA CHEHALIS
LOCAL MAP
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QUALITY INN CENTRALIA CHEHALIS
AERIAL PHOTO
10QUALITY INN CENTRALIA CHEHALIS
PROPERTY PHOTO
Marcus & Millichap closes
more transactions than any
other brokerage firm.
12
11QUALITY INN CENTRALIA CHEHALIS
FINANCIAL
ANALYSIS
12QUALITY INN CENTRALIA CHEHALIS
FINANCIAL ANALYSIS
HISTORICAL P&L
13QUALITY INN CENTRALIA CHEHALIS
ACQUISITION FINANCING
MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?
CAPABILITIES Optimum financing solutions
to enhance value
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and Our ability to enhance
terms. buyer pool by expanding
finance options
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance
financing options. seller control
• Through buyer
Our dedicated, knowledgeable experts understand the challenges of financing
qualification support
and work tirelessly to resolve all potential issues to the benefit of our clients.
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
Closed 1,678 National platform $6.24 billion Access to
set of debt/equity sources
debt and equity operating billion total more capital
financings within the firm’s national sources than and presenting a tightly
in 2018 brokerage volume in 2018 any other firm underwritten credit file
offices in the industry
14QUALITY INN CENTRALIA CHEHALIS
MARKET
OVERVIEW
15QUALITY INN CENTRALIA CHEHALIS
MARKET OVERVIEW
NORTHWEST
National Parks Bring Wave of Tourism Spending to Wyoming, Montana
Recreational activities attract tourists to smaller locales while supply pressures mount in larger
markets. Numerous parks and recreational activities will continue to lure tourists to Wyoming and
Montana as social media platforms and tourism campaigns highlight local attractions. Wyoming, in
particular, registered an increase in occupancy last year amid strong visitor spending. The upward
trend should continue through 2019 as the state launches a new tourism campaign highlighting 150
years of women’s suffrage to attract more female travelers. On the other hand, supply pressures are
mounting in Washington and Oregon, particularly in the major markets of Portland and Seattle. Both
metros have more than 6.5 percent of their total room inventory underway, which will likely continue
placing downward pressure on occupancy rates and stalling RevPAR growth in each market this year.
Overall, strength in Wyoming and Montana should outweigh supply pressures in Washington and
Oregon, supporting an uptick in regional occupancy.
Steady growth throughout Idaho and high yields will entice investors. Improving property
performance and higher-than-regional-average returns will keep demand steady for properties States: Idaho, Montana, Oregon, Washington and Wyoming
throughout Idaho. The state offers first-year returns averaging in the 12 percent band based on
property location and chain scale. Buyers in the state are targeting properties in Boise, Post Falls and
Coeur d’Alene. The bulk of overall regional trading volume will remain in Washington and Oregon,
with properties in Seattle and Portland highly sought after. Hotels in both markets trade with cap
rates in the mid-10 percent area. Independent hotels in both Portland and Seattle attracted buyers,
2019 Demand Growth
with opportunistic investors acquiring older properties built prior to the 1970s.
3.8% Year-over-Year Room Nights
16QUALITY INN CENTRALIA CHEHALIS
MARKET OVERVIEW
NORTHWEST
2.5% Percent of Inventory Under Construction as of December 2018
120 bps Five-Year Occupancy Growth 2014-2019
20% Five-Year RevPAR Growth
2019 Regional Highlights
▪ New regulations surrounding short-term rentals went into effect at the beginning of the year in Seattle.
Anyone operating these rentals must have a regulatory license that lasts one year, on top of the license
tax certificate. Additionally, owners can only operate up to two units, one of which must be the primary
residence. These new regulations may sway some from placing their homes on sites like Airbnb,boding
well for hotel demand.
▪ Expansions made to the Boise Centre will provide the city more capacity to host larger events more
often. New meetings and events could bring more visitors to the state, benefiting area hotels.
▪ Expansions at the Glacier Park International Airport could bring additional visitors to Northwest Montana,
particularly as more individuals travel to the state to visit Glacier National Park. Visitation to the park
increased by 1.1 million visitors between 2013 and 2017.
s 2018 Recent Openings; Under Construction as of December 2018
Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics
17QUALITY INN CENTRALIA CHEHALIS
MARKET OVERVIEW
NORTHWEST
2019 Region Forecast
Supply Nearly 7,800 rooms are under construction throughout the region and an
up 2.3% additional 8,600 rooms are expected to break ground within the next 12
months. Washington will lead delivery volume, receiving 4,700 of the rooms
underway.
Occupancy Building on a 30-basis-point increase recorded in 2018, occupancy
up 30 bps throughout the Northwest region climbs to 64.7 percent.
ADR Led by increases in Idaho and Washington, the average daily rate will edge
up 1.2% up to $122.79. In the prior year, ADR rose 1.6 percent.
RevPAR Steady increases in occupancy and the average daily rate will lift RevPAR up
up 1.6% to $81.55 regionally. In 2018, the rate registered a 1.8 percent rise.
Investment Heightened room demand in Wyoming will encourage some buyers to inject
capital into the state. Smaller hotels of less than 100 rooms will be highly
targeted, particularly in the Jackson and Cheyenne areas.
* Forecast
Sources: CoStar Group, Inc.; STR, Inc.; Real Capital Analytics
18PROPERTY
QUALITY INN
NAME
CENTRALIA CHEHALIS
DEMOGRAPHICS
MARKETING TEAM
Created on June 2019
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
▪ 2023 Projection ▪ 2018 Estimate
Total Population 6,946 22,126 28,968 $200,000 or More 0.99% 1.47% 1.52%
▪ 2018 Estimate $150,000 - $199,000 0.79% 1.73% 2.11%
Total Population 6,766 21,538 28,235 $100,000 - $149,000 10.86% 9.63% 9.65%
▪ 2010 Census $75,000 - $99,999 10.23% 10.04% 10.48%
Total Population 6,620 21,048 27,471 $50,000 - $74,999 24.19% 20.76% 21.26%
▪ 2000 Census $35,000 - $49,999 14.72% 14.41% 14.10%
Total Population 5,932 19,240 25,258 $25,000 - $34,999 10.83% 11.95% 12.37%
▪ Daytime Population $15,000 - $24,999 11.25% 13.04% 12.67%
2018 Estimate 6,747 21,826 28,330 Under $15,000 16.12% 16.97% 15.83%
HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $55,772 $55,690 $57,138
▪ 2023 Projection Median Household Income $45,581 $42,277 $44,012
Total Households 2,889 8,982 11,742 Per Capita Income $23,091 $22,450 $23,089
▪ 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Total Households 2,773 8,588 11,216 ▪ Population 25+ by Education Level
Average (Mean) Household Size 2.41 2.46 2.47 2018 Estimate Population Age 25+ 4,536 14,680 19,096
▪ 2010 Census Elementary (0-8) 4.32% 4.94% 4.62%
Total Households 2,725 8,442 10,974 Some High School (9-11) 7.57% 9.44% 9.14%
▪ 2000 Census High School Graduate (12) 28.62% 29.57% 28.30%
Total Households 2,476 7,648 9,920 Some College (13-15) 27.36% 27.15% 28.40%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Associate Degree Only 11.28% 11.18% 11.38%
▪ Occupied Units Bachelors Degree Only 13.62% 10.36% 10.81%
2023 Projection 2,889 8,982 11,742 Graduate Degree 6.56% 5.84% 6.05%
2018 Estimate 2,939 9,213 12,016
Source: © 2018 Experian
19PROPERTY
QUALITY INN
NAME
CENTRALIA CHEHALIS
DEMOGRAPHICS
MARKETING TEAM
Population Race and Ethnicity
In 2018, the population in your selected geography is 6,766. The The current year racial makeup of your selected area is as follows:
population has changed by 14.06% since 2000. It is estimated that 82.61% White, 1.28% Black, 0.51% Native American and 1.51%
the population in your area will be 6,946.00 five years from now, Asian/Pacific Islander. Compare these to US averages which are:
which represents a change of 2.66% from the current year. The 70.20% White, 12.89% Black, 0.19% Native American and 5.59%
current population is 48.27% male and 51.73% female. The median Asian/Pacific Islander. People of Hispanic origin are counted
age of the population in your area is 36.06, compare this to the US independently of race.
average which is 37.95. The population density in your area is
2,147.04 people per square mile. People of Hispanic origin make up 15.77% of the current year
population in your selected area. Compare this to the US average of
18.01%.
Households Housing
There are currently 2,773 households in your selected geography. The The median housing value in your area was $170,042 in 2018,
number of households has changed by 12.00% since 2000. It is compare this to the US average of $201,842. In 2000, there were
estimated that the number of households in your area will be 2,889 1,491 owner occupied housing units in your area and there were 985
five years from now, which represents a change of 4.18% from the renter occupied housing units in your area. The median rent at the
current year. The average household size in your area is 2.41 persons. time was $496.
Income Employment
In 2018, the median household income for your selected geography is In 2018, there are 2,742 employees in your selected area, this is also
$45,581, compare this to the US average which is currently $58,754. known as the daytime population. The 2000 Census revealed that
The median household income for your area has changed by 46.62% 52.67% of employees are employed in white-collar occupations in
since 2000. It is estimated that the median household income in your this geography, and 48.75% are employed in blue-collar occupations.
area will be $51,247 five years from now, which represents a change In 2018, unemployment in this area is 7.19%. In 2000, the average
of 12.43% from the current year. time traveled to work was 21.00 minutes.
The current year per capita income in your area is $23,091, compare
this to the US average, which is $32,356. The current year average
household income in your area is $55,772, compare this to the US
average which is $84,609.
Source: © 2018 Experian
20QUALITY INN CENTRALIA CHEHALIS
8 DEMOGRAPHICS
21PRESENTED BY
Stanley Wang
National Hospitality Group
Los Angeles Office
Tel: (213) 943-1970
Cell: (586) 668-1114
stanley.wang@marcusmillichap.com
Licenses: CA 02055241
www.MarcusMillichap.com
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