Swoboda Hospitality Specialists was retained on an Exclusive Listing to secure a purchaser.
The hotel was subject to a Land Lease that was double the market rate with only 20 years remaining, at which time the cost would be four times the market rate. The land was owned by three trusts made up of 38 individuals. Without the purchase of the land, the hotel was completely unmarketable.
Finding a way to purchase the land in order to make the hotel marketable at a selling price that the property owner could recover his investment and hopefully some profit for the 12 years of operating the asset.
Swoboda Hospitality Specialists was able to negotiate a purchase of the land with the Family Trusts holding the property and the Leasehold interest. This was accomplished by securing an M.A.I appraisal and negotiating a purchase price equal to the appraised amount. The property consisted of six acres, of which the zoning only required four. Swoboda Hospitality Specialists oversaw a lot line adjustment to develop an additional development site for a 140 room Marriott Townplace hotel, utilizing the two-acre overage. Swoboda Hospitality Specialists was able to secure a sale price of $15,750,000, giving the Seller the return of investment plus approximately a $2,000,000 profit on the sale.