PROPERTY OVERVIEW TERRE HAUTE, IN Opportunity to acquire a centrally located, premium-branded select-service hotel offered unencumbered of management 1
PROPERTY OVERVIEW : PROPERTY OVERVIEW Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to exclusively present the opportunity to acquire the Hampton Inn Terre Haute (the Property or Hotel ) in Terre Haute, Indiana. The 112-key, selectservice Hotel is located three miles south of Indiana State University with 13,500 students and boasts easy access and prime visibility from I-70 and Highway 41 South, the two main thoroughfares in Terre Haute. Offered unencumbered by management, the premiumbranded Property offers a new investor a clear value-add strategy by completing the Forever Young renovation. PROPERTY OVERVIEW Address: 3325 U.S. Highway 41 South Terre Haute, Indiana, 47802 Ownership Interest: Fee Simple Franchise Expiration*: March 2030 Year Built: 1972 (recieved over $32,500 per key in renovations since 2013) Guestrooms: 112 Meeting Space: Amenities: 144 SF Indoor Heated Pool 24-Hour Business Center Free Hot Breakfast Fitness Center 24-Hour Treats Shop * New franchise license term to be negotiated between new buyer and Hilton. 2
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Strategically Located Asset The Hampton Inn Terre Haute is strategically positioned just three miles south of downtown Terre Haute and Indiana State University near the Wabash River. The Hotel is directly adjacent to the 680,000 square foot Honey Creek Mall, and is surrounded by over 2.2 million square feet of retail space within a one-mile radius of the Property. The Vigo County Industrial Park six miles south of the Hampton Inn Terre Haute spans 2,300 acres and features industrial manufacturing, processing, and distribution centers for CSN, Staples, Aisin Brake & Chassis, CertainTeed and ThyssenKrupp Presta. Pfizer and Danisco Sweeteners also have major facilities in the area. Other local demand drivers include the 278-bed Terre Haute Regional Hospital, St. Mary-of-the-Woods College, and Rose-Hulman Institute of Technology. Downtown Indianapolis is located less than an hour east of the Property and is easily accessible via I-70. Excellent Visibility and Accessibility The Property, which stands seven stories tall, is prominently situated at the most heavily trafficked interchange in the region that sees a combined 81,000 vehicles per day. I-70 represents the primary east-west thoroughfare connecting Indianapolis to St. Louis, while U.S. Highway 41 runs north-south through downtown Terre Haute and connects Chicago to Nashville. Both east and westbound exits from I-70 intersect US-41 just north of the Hotel, providing excellent exposure and visibility. Below Replacement Cost Based on the expected sales price, the Property is being offered at a significant discount to replacement cost. Given the continued increasing of construction costs and the Property s concrete and steel construction, it would likely be north of $150,000 per key to replace this Property. Dominant Brand & Distribution System As one of the most highly-desirable brands in the hotel industry, Hampton by Hilton provides excellent brand recognition for drive-to business with the support of a deep reservation system and global marketing platform. Hampton by Hilton is arguably the most prominent of the upper-midscale brands with a strong appeal to both business and leisure travelers. 3
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Expertly Maintained Asset with Tangible Upside Previous ownership spent $2,300,000 ($20,500 per key) in capital expenditures and current ownership has completed an additional $1,350,000 ($12,000 per key) in capital improvements, substantially completing most of the items required by the Forever Young initiative. With the majority of the heavy lifting complete, a new buyer will step into a newly renovated hotel, and will be well-positioned to compete with the newer-vintage, select-service hotels at the I-70 / US-41 interchange. Unencumbered of Management The Hampton Inn Terre Haute is being offered unencumbered of management. A new owner will benefit from the ability to retain the leading Hampton by Hilton brand while potentially employing a unique operating strategy to grow NOI margin and drive net cash flow. 4
P R OPERTY OVERVIEW UNION HOSPITAL 2,900 Employees INTERNATIONAL PAPER 25 Miles North ELI LILLY & CO 8 Miles North wy ST. MARY OF THE WOODS COLLEGE H U.S. INDIANA STATE UNIVERSITY 1,800 Students 6 Miles 40 13,500 Students 435 Acre Campus $381 Million Economic Impact CLABBER GIRL MUSEUM DOWNTOWN TERRE HAUTE 2.5 Hours 1.25 Hours ROSE-HULMAN INSTITUTE OF TECHNOLOGY SWOPE ART MUSEUM ST. LOUIS INDIANAPOLIS 2,200 Students 200 Acre Campus Ranked #1 U.S. Engineering Program with No Doctorate Offered in 2018 (U.S. News) TERRE HAUTE BREWING COMPANY FAIRBANKS PARK TERRE HAUTE REGIONAL AIRPORT VIGO COUNTY HISTORICAL MUSEUM CANDLES HOLOCAUST MUSEUM ers tat U.S. Hwy 41 Int CHICAGO e- 70 RIVERSIDE PLAZA SHOPPING CENTER INDIANAPOLIS TERRA HAUTE HONEY CREEK MALL REA PARK GOLF COURSE Macy s, Sears, JC Penny, Carson s VIGO COUNTY INDUSTRIAL PARK CSN, Staples, Aisin, CertainTeed, Pfizer, Danisco Sweeteners COLUMBUS CINCINNATI ST. LOUIS LOUISVILLE CROSSROADS DRAGWAY RACE TRACK LO CATI O N OVE RV I E W Situated one hour west of Indianapolis near the Illinois border, Terre Haute is known as the Crossroads of America since the city center s intersection involves US-40 which runs from California to Maryland, and US-41 which connects Michigan to Miami, Florida. With a population of approximately 171,000 in the metropolitan area, Terre Haute enjoys a diverse economic base supported by manufacturing, health services, education, and agriculture. Notable corporations located in Terre Haute include Bemis Company, Advics Manufacturing, Companhia Siderurgica Nacional (CSN), Staples, and General Electric. With a central location near the Wabash River, several major highways, and essential rail linkages, the Terre Haute economy is strong and growing with an unemployment rate at 3.8% as of year-end 2017. Terre Haute is also a hub for higher education with the 13,500-student Indiana State University, Rose-Hulman Institute of Technology, St. Mary-of-the-Woods College, and Ivy Tech Community College represented. H AMP T ON INN TERR E HAUTE 5
TERRE HAUTE, IN INVESTMENT SALES: PRESTON REID Director preid@hfflp.com 813-387-9905 RYAN LINDGREN Director rlindgren@hfflp.com 312-300-7296 WYATT KRAPF Associate wkrapf@hfflp.com 813-387-9909 AUSTIN LAPOTEN Associate alapoten@hfflp.com 407-745-3915 ASHLEY ROSENBERG Analyst arosenberg@hfflp.com 813-387-9913 MICHAEL WEINBERG Sr. Managing Director mweinberg@hfflp.com 407-745-3914 DEBT PLACEMENT: JEFF BUCARO Senior Director jbucaro@hfflp.com 312-528-3678 Holliday Fenoglio Fowler, L.P. ( HFF ), a Florida licensed real estate broker. 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.