T | 510.205.7931
T | 312.402.2959
Listed by Daniel Beider AL 000105810
- Fee-simple interest in the corporate owned and managed 120-room Extended Stay America (ESA) Montgomery Eastern Boulevard
- Available for individual sale, part of a South / Southeast ‘Sun-Belt’ 17-property portfolio available in the auction events ending on March 15th-16th
- Ability to purchase any combination of the 17-assets, affording buyers the opportunity to capitalize on strong regional operating economies of scale
- Strong in-place performance with trailing-24-month year-over-year average ADR gains of +12%
- Offered unencumbered of brand, debt, and management – with a variety of alternative brand options available for conversion
- Product type with fully equipped kitchens is ideal for potential residential conversion or alternative use pending zoning and municipality approval
- Ideally located within the Montgomery MSA, proximate to all regional demand including Maxwell-Gunter Air Force Base, Alabama State University and the Alabama State Capitol.
- Property is readily accessible via US-231 and I-85 with upwards of 43,000 vehicles passing the location daily.
- Rare opportunity to purchase corporate owned ESA assets amidst their first public marketing of properties since the +$6B portfolio acquisition in June 2021.
- Extended stay economy product is widely revered as recession proof and remains a favorite investment sector amidst private and public investors.
- Extended stay economy product has also vastly outperformed all other lodging sectors in recent years, with particularly robust growth amidst the COVID recovery.
- High margin business model is ideally well positioned for any forward economic contraction given limited labor requirements with no sales department or food and beverage offering.
- In 2022 alone, Montgomery received around $1.7 billion in capital investment from 23 major projects which includes the new MANNA Beverages & Ventures $600MM facility, the new Diageo North America $400MM facility, the Hyundai $300MM EV investment, the Hyundai Mobis $200MM EV battery plant expansion, the FedEx $52MM expansion and the New Premier Tech $32MM facility.
- Alabama has been the primary benefactor for industrial expansion over the past two years amidst +$9.4B of capital investment from larger national and multi-national conglomerates citing the business friendly environment