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The two story Howard Johnson Airport
Inn consists of 101 units. It is located near the entrance
to Sky Harbor International Airport.
The Motel rooms are arranged in an "L"-shaped configuration,
wrapped around the pool and one-story commercial building,
which includes the lobby, restaurant, lounge, kitchen, two
meeting rooms, administrative office and car rental office.
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The Motel, we believe, was built in 1973
and went through renovation and refurbishing in 1998, at which
time 75 rooms were attractively redone, along with the restaurant
and lounge.
The roof on the commercial building, we are told, was redone
in mid to late 1998, at the same time as replacement and repairs
were made to the roof over the guest rooms.
The property went through further renovation in 2002 at an
approximate cost of $250,000. |
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The restaurant and lounge are rented at
a monthly base rate versus eight percent (8%) of the gross revenues
with minimum rent increases to the CPI and offsets for utilities
and certain repair items.
Budget Rent-a-Car rents space in the lobby. |
The larger meeting room is approximately
1,050 square feet, with a seating capacity of 65 conference-style
and 100 theater-style.
The smaller meeting room is approximately 300 square feet,
with a seating capacity of 16 conference-style and 35 theater-style. |
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Each guest room is heated and cooled
by its own individual unit. The commercial building is served
by a central system.
Electricity is provided by Arizona Public Service (APS);
water and sewer service are provided by the City of Phoenix. |
GUESTROOM BREAKDOWN:
- 3 King Suites with large sunken tubs
- 35 Kings
- 44 Double Queens
- 7 King Suites
- 2 Double Queen Suites
- 8 Double Doubles
- 2 Handicapped Kings
- 101 units total - Seven units are currently unfurnished
so configuration could easily be changed
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The Howard Johnson Airport Inn has been
operated by a receiver since late April 2000. The lender received
title to the property as a result of a foreclosure sale held
in January 2003.
During that interim period, in part due to road work in
front of the property, the income declined from previous levels.
The property needs sound and consistent management to bring
income back to historical levels.
We believe that this property is extremely
well priced – close to $18,000 per unit – and
has nowhere to go but up! |
PRICE: SOLD
(Note that the last reported sale of this
property was in the amount of $3,500,000.)
A buyer will need approximately 25% cash down ($468,750) to
secure a loan of 75% of this very low sales price.
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