TX - Cotulla - Malana Hotel_Offering

OFFERING MEMORANDUM
Online Real Estate Auction: March 16th
75 Room Luxury Hotel – Built in 2014
165 Mars Drive, Cotulla, TX 78014
Suggested Opening Bid: $750,000
Contents
• Introduction & Inspection
• Introduction and Inspection
• Executive Summary
• Property Description
• Investment Opportunity
• Terms of Sale
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Introduction and Inspection Dates
This offering features the Malana Hotel, a contemporary 75-room hotel (built in 2014) situated on 3.37 acres and located at
165 Mars Drive, Cotulla, Texas (the “Property”). The existing hotel features a full-service restaurant and kitchen, industrial
laundry equipment, a state-of-the-art fitness center, and executive conference rooms equipped with wireless and video
conferencing. This turnkey hotel includes all FF&E, in “like-new” condition.
First-Class Amenities
 Custom designed bathrooms, in-room microwave, refrigerator, coffee maker, flat screen television
 Fitness Center complete with treadmills, elliptical machines, stationary bicycle and free weights
 Guest Laundry Services
 Executive Conference Room
 Administrative Offices
Additional details of this offering, including any due diligence documents, are available in the Virtual Deal Room located at
the following link: hilcorealestate.com/malanahotel
ON-SITE INSPECTIONS:
March
8th
and
15th
from 12-2pm, call to reserve an appointment.
ONLINE AUCTION
AUCTION DATE: Wednesday March 16th – 10:00am
CERTIFIED FUNDS DUE MARCH 15th: $25,000
BUYER’S PREMIUM: 6% of High Bid Price
FOR MORE INFORMATION CONTACT:
Jeff Azuse – [email protected]
847.418.2703
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Todd Van Sickle – [email protected]
847.418.2725
Executive Summary
Completed in 2014, the Malana Hotel is a contemporary four-story, full-service hotel. The approximately 40,000 square
foot building sits on 3.37 acres, the building currently features 28 Standard King and 47 Standard Queen rooms. The
building also offers amenities that include a full service restaurant and kitchen, a fitness center, and an executive meeting
area. The Property is less than one mile from Interstate 35 (I-35) in the city of Cotulla. I-35 connects the city of Laredo in
southwest Texas to San Antonio and Austin in south central Texas. Cotulla caters to people who live or work in south-central
Texas.
The modern hotel was built with first-class amenities that offer comfort, relaxation, and productivity to guests of the hotel.
Each room features “like-new” hardwood flooring, a custom bathroom with marble, a mini-refrigerator, microwave, coffee
maker, and flat screen television. The full-service kitchen and executive meeting area could cater to special events including
corporate meetings or family gatherings.
The Property is adjacent to an assisted living facility and the existing building and vacant land could easily be repurposed
into an assisted living or senior living community with food service, laundry services, and elevators.
This is a value-add turnkey investment opportunity that will require minimal capital expenditures from the new owner.
The FF&E included in this offering are in “like-new” condition. Both the exterior and interior portions of the Property are in
excellent condition and the new owner may only wish to make minor cosmetic changes prior to opening for business.
This investment can be readily prepared for immediate use as a hotel or living community.
Incredibly rare investment opportunity, a value-add investment in first-class and turnkey condition.
The Property will be sold due to a partnership dissolution, time is of the essence.
To schedule your on-site inspection, call or email today!
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Property Description
ASSESSOR’S PARCEL NUMBER:
57120
LOT AREA (ACRES / SQUARE FEET):
3.37 Acres / 146,797 Land Square Feet
ADDRESS:
165 Mars Drive, Cotulla, TX 78014-3193
LAND USE:
RETAIL TRADE
STATE USE:
REAL COMMERCIAL (F1)
IMPROVEMENTS CONSTRUCTED:
2014
PROPERTY TAXES:
$26,607 – 2015
NUMBER OF STORIES:
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NUMBER OF HOTEL ROOMS:
75
EXISTING HOTEL ROOM MIX:
28 Standard King Rooms
47 Standard Double Queen Rooms
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Property Aerial
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Modern Exterior
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First-Class Interior Amenities
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Cotulla Aerial
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Southwest Texas Aerial
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Investment Opportunity
 Why Invest In This Hotel?
 Current property was un-flagged and lacked market exposure:
The new experienced owner can immediately leverage their industry knowledge to re-brand the Property, implement their
proven operational model and strategy, streamline expenses, execute targeted marketing, and increase revenue —
maximizing the Property’s untapped potential.
 Value at a Significant Discount to Replacement Cost:
The sale of the Malana Hotel represents an opportunity for an investor to acquire a full-service hotel at a fraction of the
Property’s replacement cost. Both the interior and exterior are in “like-new” condition.
 Turnkey Building and Facilities, minimal capital expenditures:
The existing building and facilities are in near-pristine condition and provide an immediate opportunity for the investor to
repurpose, begin business operations with minimal capital expenditures, and achieve immediate operating income.
 Additional Acreage for Expansion or Sale:
The eastern 1.2 acres of the Property are vacant and not currently being utilized. This provides a savvy owner-operator with
additional land to expand the existing building, construct an additional building, or sell as a separate asset.
The vacant land could be used for twenty six additional hotel rooms, a dedicated banquet facility, or other highest and best
uses.
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Terms of Sale
INFORMATION SOURCES: auctions.HilcoReal.com;
Jeff Azuse 847-418-2703 [email protected];
Todd Van Sickle 847-418-2725 [email protected]
AUCTION FORMAT: Bidding will be done ONLINE. To bid during the auction, you need to register online at http://auctions.hilcoreal.com/ and click
on the View Auction link then click on the green “Register” button located on the top left hand side of the property page. Once registered you
will receive an acknowledgement email, login with your email and password and click on the “Documents” tab where you will find more detailed
instructions to be approved by the transaction team in order to bid. Please call 847-418-2703 for further instructions.
AUCTION DATE/LOCATION: The auction will be conducted online. The online auction shall be held open from 10:00 a.m. CST on Wednesday
March 16, 2016 and will close at 5:00 p.m. CST on Wednesday, March 16, 2016. You will need to be registered and be approved to bid by our
transaction team, which requires accepting the Terms of Sale, accepting the Purchase and Sale Agreement and depositing the required initial
earnest money deposit. Please call 847-418-2703 for further instructions.
CERTIFIED FUNDS OR WIRE TRANSFERRED FUNDS REQUIRED: Certified funds in the amount of $25,000, as an initial down payment are required
to bid at the auction. Online bidders are required to mail, overnight or wire transfer funds to Hilco Real Estate Attn: Jeff Azuse, 5 Revere Drive
Suite 320, Northbrook, IL 60062, initial deposit cashiers checks or wire transfers for on-line bidders must be received no later than 2:00 p.m. CST
Tuesday, March 15, 2016. For wiring instructions please email Jeff Azuse at [email protected] or they are located in the “Documents” tab
after you have registered online. Upon the conclusion of bidding and the Seller’s acceptance of the Purchase and Sale Agreement, the funds will
be deposited as earnest money as provided in the Purchase and Sale Agreement. If you are not the winning bidder your funds will be returned.
PROPERTY AVAILABLE: The Property to be sold includes all or substantially all real property, fixtures, and the improvements thereon at 165 Mars
Drive, Cotulla, TX 78014 (collectively, the “Property”). The Property is being sold for all-cash in existing "as-is", "where-is" condition and subject
to no contingencies including financing.
BUYER'S PREMIUM: Auction purchaser shall pay a Buyer‘s Premium equal to 6% of the high bid price. This amount shall be added to the High
Bid Price. The sum of the High Bid Price plus the Buyer’s Premium shall equal the Total Purchase Price in the Purchase and Sale Agreement.
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Terms of Sale
RESERVE OFFERING: The Property are being offered with reserve and are subject to Seller’s acceptance within five (5) business days of the
auction. The winning bid must remain irrevocable by the High Bidder during this period. The Suggested Opening Bid in the marketing materials
are simply the Auctioneer's suggestion as to where the bid may open; it is not a minimum bid and in no way obligates the Seller as to the bid
amount that he will accept or reject.
ATTORNEY REVIEW: All information contained in the auction-related marketing material, should be carefully reviewed by an attorney prior to the
auction.
CONDUCT OF THE AUCTION: Conduct of the auction and increments of bidding are at the direction and discretion of the Auctioneer. In the event
of a dispute between bidders, the Auctioneer shall make the final decision to accept the final bid, to re-offer and resell the Property, or to
remove the Property from the auction. If any disputes should arise following the auction, the Auctioneer's records shall be conclusive in all
respects.
INSPECTION: The Property is being offered for sale in its existing “as-is” condition subject to the terms of the Purchase and Sale Agreement. The
Purchaser may not rely upon any disclosures, representations or warranties other than those provided in the Purchase and Sale Agreement.
Hilco Real Estate recommends any prospective purchaser inspect the Property and all accompanying documents prior to the auction.
Those inspecting the Property assume all risk associated with any inspection.
INSPECTION DATES:
Tuesday, March 8th – 12pm to 2pm
Tuesday, March 15th- 12pm to 2pm
DOCUMENTS AVAILABLE: Due Diligence Documents are available online under the “Documents” tab once you have properly registered at
http://auctions.hilcoreal.com/ and include the Purchase and Sale Agreement, Property information, Financial Information, local, and other
applicable information. Seller, Seller’s Broker and Auctioneer shall not be liable for any inaccuracy contained in any reports furnished to buyers
originating from third party experts.
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Terms of Sale
REQUIREMENTS OF THE SUCCESSFUL HIGH BIDDER: The successful high bidder will be required to sign the Purchase and Sale Agreement upon
the conclusion of bidding, acknowledging the purchase and the $25,000 certified or cashier's check or wire transfer as initial down payment will
be deposited. The initial down payment MUST be increased to 10% of the Total Purchase Price by cashiers or certified check or wire transfer
within three business days following Sellers acceptance. All registering bidders may also be asked to sign a statement that the bidder has
inspected the Property and reviewed documents related to the Property and the Auction.
CLOSING DATE: The Standard Closing Date shall be on or before 30-days from Seller’s Acceptance.
AGENCY DISCLOSURE: Hilco Real Estate, LLC, In cooperation with Broker/Auctioneer Paul A. Lynn & Assoc., LLC TREC 9000498 Auc. Lic. #9627.,
and all licensees employed by or associated with Hilco Real Estate, LLC who are involved with this auction, represent the Seller in this real estate
transaction. For additional Terms of Sale, see the Purchase and Sale Agreement. The Seller, Auctioneer and their agents assume no liability for
inaccuracies, errors or omissions in the auction marketing materials, including the Property Information Packet.
ALL SQUARE FOOTAGE, DIMENSIONS, COMMON AREA CHARGES (IF, ANY), FINANCIAL INFORMATION AND TAXES IN THIS AND OTHER MARKETING
MATERIALS ARE APPROXIMATE. This offering may be withdrawn, modified or canceled without notice at any time.
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Broker Participation
BUYER’S AGENT COMPENSATION: Hilco Real Estate will pay an approved buyer’s broker, upon closing, a fee equal to 2% (two percent) of the
High Bid Price paid by his or her client. In order to be eligible for compensation, the buyer’s agent must hold an active real estate license in the
state in which the property is located, or possess a valid real estate license and act in conformance with the laws for paying a referral fee to an
out of state broker as promulgated by the state in which the property is located, and register the client by letter sent via email to
[email protected] or overnight carrier to Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, Illinois 60062, Attention: Jeff Azuse, or
hand delivered to a Hilco Real Estate representative during one of the viewings. The receipt of the letter by Hilco Real Estate will be
acknowledged in writing. The letter must contain a signed acknowledgement of the Buyer’s Agency relationship by the client. This registration
letter must be received before any inspection of the property by the client, and no later than three (3) business days prior to the Bid Deadline.
The Buyer’s Agent must register in person with the client during an onsite inspection. All registrations will be acknowledged in writing and the
Buyer’s Agent must include the registration acknowledgment letter with the submission of the bid. No oral registrations will be accepted. No
agency relationship will be recognized for a client who has been previously contacted by the Seller, or agents. Referral fees are based on the
High Bid Price at Closing. The Seller has provided a dual commission arrangement for the sale of this property in this offering. If an Agent has
not met all of these requirements, no compensation will be paid, even if the Agent’s client purchases the property.
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For Access to the Virtual Due Diligence Deal Room Please fill out the form on the following page or Call or Email:
Jeff Azuse
(Direct) 847-418-2703
(Cell) 773-456-5032
[email protected]
Todd Van Sickle
(Direct) 847-418-2725
(Cell) 847-257-6861
[email protected]
Hilco Global Headquarters
5 Revere Drive, Suite 320
Northbrook, IL 60062 USA
www.hilcorealestate.com
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