Case Study: The Suites at Friday Harbor

The Suites at Friday Harbor

Overview

Greg Meinhold of Swoboda Hospitality was hired by the Adelman Family to dispose of the Suites at Friday Harbor. The Property consists of 1 67 unit building and 2 single family houses 1 being used for the managers quarters and on as a suite rental. The 67 unit building was originally developed as an active senior living facility.

Challenges

The property is on an island with limited tourist season, no brand affiliation limiting reservations and market exposure. Ownership that lives out of state and operated by on site manager. Being on the island without brand affiliation financing the property is not highly likely. Due to the prior use the design is unique and unit mix is odd. The common areas consist of a dining room, lounge, with no provision for a pool, spa, fitness center, or meeting space. Although there was an agreement in place with another property that the ownership had recently sold allowing for the use of the aforementioned items, the franchise companies would not recognize the agreement for branding purposes.

Results

Upon submitting an application and getting a PIP from Best Western we went t work to cost and develop a strategy for the renovation of the asset. This included, a new FFE package, adding gas fireplaces to each suite, remodeling the kitchen areas to provide for an eating bar. Addition of a spa and fitness center, adding a second story in the dining room vaulted ceiling airspace as to accommodate a meeting room. Knowing that most hoteliers at the time were not looking to be involved in the operation of a restaurant, we sought and secured a local restaurateur to lease the Food and Beverage department on a long term lease. This lease added value to the property in the fact that the operator had 4 other successful operations in the city and he lease and guaranteed the lease of the space on a long term basis. Our company not only acted as Broker but as Project Manager of the renovation as well. We were able to deliver the asset at closing newly branded as a Best Western. The property is currently in the Best Western Premire Portfolio. The ultimate buyer came as a client of one of our Southern California agents. The closing was rather complicated as several of the ownership group were located out of the area, one of the individuals signatures even needed to be gotten while in China. We utilized our long term relationship with the National Closing Coordinator at the Nation Title office located in Seattle, who in turn orchestrated several courtesy closings about the country to facilitate a punctual recording of the deed.

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