Marcus & Millichap is pleased to present the opportunity to acquire Silver Spray Motel. This motel is in an excellent location; only one block from the sand. Hollywood Beach is one of the fastest-growing areas for hospitality in Southeast Florida. The approximately 11,899 square foot motel is comprised of three buildings, two one- story structures and one two-story structure.
The motel consists of renovated, clean & bright 21 rooms with a mix of efficiencies and two bedroom suites that come fully furnished. Room amenities include full kitchen, 2 bathrooms, satellite TV (Canadian channels are included), laundry, Iron, hair dryer, beach towels, beach chairs and toys for the kids. Guests can walk through the patio, sunbathe or enjoy meals outside at the barbecue-grill area.
The investor could take advantage of this property, operating the hotel as-is, or with a small investment in furniture and appliances (up to $5,000 per room) the ADR can be increased, targeting a more upscale clientele and/or converting the hotel to a hostel/ short term rental property.
The 5 year pro-forma for the motel is based on the ADR' s, occupancy rates & revenue per room from comparable properties in the area, which can be found on page 22.
This is a prime opportunity for an investor to improve operations at the motel to bring it in line with the market over the next five years, and exit after 5 years at an estimated CAP rate of 6%, yielding a five year leveraged IRR around 10.86%
This property is zoned as BRT-25-C, with main permitted uses as commercial, hotel/ motel, personal services, retail & restaurants among others. The new owners will benefit from the redevelopment and renovation trends going on in the area.
