utah/nevada state line (us hwy 50 & 6) investment...

BORDER INN & CASINOUTAH/NEVADA STATE LINE (US Hwy 50 & 6)

INVESTMENT OFFERING

Property Valuation at $1,850,000Value based on 16.1% CAP on 2016 NOI

Equates to approx. 1.23 Xs Gross Revenue (GRM) for HotelOnly $78/sqft and $9,256 per Motel Unit

REAL ESTATE ASSET STRATEGIES2 W. St. George Blvd., Suite 37N

St. George, Utah 84770

For more information please call JEFF REBER

435-656-8238email at: [email protected]

The Border Inn property consists of 56.03 acres with approximately 29.59 acres on the Nevada side and 26.44acres on the Utah side. Only approximately 3.65 acres have been developed. The undeveloped portion of theland has infrastructure in place to accommodate expansion of the Motel and/or the RV Park. The developedportion of the property includes approximately 25,000 sqft of commercial buildings, including a 29 unit hotel,a casino (unrestricted license), a grocery/gift shop, large café with special events banquet room, and a 25 StallRV park with full hookups (both 30 and 50 amp service). The main building also includes a kid’s activity cen-ter, and a large meeting room that can be used for local activities, weddings, meetings and catered dinners orfestivities. The property also includes a full Nevada State liquor license. The motel units include several withkitchenettes, single queen or two double beds, guest laundry and shower facilities (used by the RV Park questsand truckers), and free internet access.

The property is located on US Hwy 50 & 6, on the Utah/Nevada border, and is just 10 minutes from Baker Ne-vada, home of the Great Basin National Park (includes Lehman Caves). See package for additional info.

Seller Financing up to 65%for 3 to 5 years at 6% Interest

BORDER INNUTAH/NEVADA STATE LINE (US Hwy 50 & 6)

INVESTMENT OFFERING

REAL ESTATE ASSET STRATEGIESFor more information please call JEFF REBER


The information contained in the following Marketing Brochure is proprietary and strictly confidential. Itis intended to be reviewed only by the party receiving it from Real Estate Asset Strategies and should notbe made available to any other person or entity without the written consent of Real Estate Asset Strategies.

This Property Valuation Summary has been prepared to provide summary, unverified information to pro-spective lenders/investors, and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation.

The information contained in this Property Evaluation Summary has been obtained from sources we be-lieve to be reliable; however, Real Estate Asset Strategies has not conducted any investigation regardingthese matters and makes no warranty or representation whatsoever regarding the accuracy or complete-ness of the information provided. Real Estate Asset Strategies makes no warranty or representation, withrespect to the future projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's or asbestos, thecompliance with State and Federal regulations, or the financial condition or business prospects of any ten-ant, or any tenant's plans or intentions to continue its occupancy of the subject property.

All potential lenders/investors must take appropriate measures to verify all of the information set forthherein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT JEFF REBER AT REAL ESTATE ASSET STRATEGIES FOR MORE DETAILS.


INVESTMENT OFFERING


435-656-8238

EXECUTUVE SUMMARY: Border Inn, US Hwy 50 & 6, Utah/Nevada State Line

Property Summary: Combined Totals (see following pages for detailed breakdown)· Built from late 1960s through 2012· 56.03 Acres - 3.65 developed· 29 unit motel, Casino, Gas Station, 25 stall RV Park· Motel includes: Single Queen Rooms with and without Kitchenettes, 2 Double Bed rooms with and with-

out Kitchenettes, and some long term stay units with kitchenettes.· Manager’s dwelling· Guest Laundry Facilities· Large Reception/Meeting rooms· Full 88 seat Restaurant with County Liquor License· Large meeting room adjacent to the cafe· Casino and Bar area with approximately 38 Slot machines (8 new ones in 2017), (Unrestricted License)

quarterly Fees of $60/mo and an annual State Tax fee of $250 per machine, plus 3.5% of total winnings.· Activity Room with Pin-ball and electronic games, and 2 pool tables (on consignment House keeps 40%)· Gas Station with 4 lanes (6 pumps, 2 Diesel & 4 Gas) – Phillips 66· Tour Bus and Oversized Truck Parking area· 4 Out buildings that include the water & fire sprinkler pump house, work shop, and two storage buildings· There are also 5 mobile homes plus a couple oversized motel rooms as employee residences· 2 water wells (Utah and Nevada) with in place infrastructure and fire suppressant systems· Oversized septic system (15,000 gallon) with two large leach fields and additional connections for future

building and/or RV park expansion· Additional Land has oversized infrastructure (sewer/septic, electric) in place· Also included in the sale are 2 billboards located in Ely and on Hwy 50 (Yesco signs paid monthly)· The main signs out front of the property are also Yesco Signs on monthly maintenance contracts.· 2 trucks and a tractor


INVESTMENT OFFERING



Investment Summary:

· 2016 Gross Revenue : $1,917,486 Actual (Motel Gross Revenue was $204,549)· 2016 YE NOI: $298,205 or a 16.1% CAP· 2016 Actual Cash on Cash (after debt): 31.7%· 2015 Gross Revenue : $1,804,532 Actual (Motel Gross Revenue was $219,078)· 2015 YE NOI: $227,898 or a 12.3% CAP rate on suggested valuation· 2015 Cash on Cash Simple Return - 29.6% (without new debt)· 2014 YE NOI : $223,898· Combined Price per sqft: $72· Per Motel Unit Value: $9,256 (based on value for motel property only)· For Motel, 1.5 Xs Grs Revenue (based on value for motel property only)· Unrestricted Casino License (Seller Lease back during

new Owner’s Application Period)· Nevada State Liquor License· 56.03 Acres Owned Fee Simple· 2016 Gas and Diesel Sales = $636,533.· 2016 Cost of Fuel = $502,389· 2016 Casino NET Revenues = $262,109· 2016 Café Income = $279,304

ECONOMIC SUMMARY:COMBINED:The Border Inn in Utah had a combined (Motel, Casino, Gas Station, RV Park, Café) 2016 Gross Revenue of approximately $1,917,486 dol-lars. The projected 2017 Combined Gross Revenue is $1,955,836.

The combined Net Operating Income (NOI) for 2016 was $298,205, and the projected 2017 combined NOI is $312,328.

With a Projected Valuation of $1,850,000, the Capitalization (CAP) Rate based on 2016 NOI is 16.1% and the CAP rate based on 2017 Pro-jected combined NOI will be 16.9%.

MOTEL & RV Park:The Border Inn Motel and RV Park had a 2016 Gross Revenue of approximately $214,269 dollars, and the projected 2017 Gross Revenue is$217,799. The RV Park’s 2016 portion of this revenue was approximately $16,421.

The Net Operating Income (NOI) for 2016 was $43,267, and the projected 2017 NOI is $45,723.

The Projected Valuation of the Motel and RV Park is $268,417, which equates to an approximate 1.4 Gross Rev Multiplier and only $9,256per unit (after deducting a value for the RV Park) the Capitalization (CAP) Rate based on 2016 NOI is 16.1% and the CAP rate based on 2017Projected combined NOI will be 16.9%. Note: Per Unit Cost (after deducting RV Park Value = $9,256/Unit).

CASINO:The Border Inn Casino, which includes the revenue from the Café, Bar and Grocery/Gift Shop, had a 2016 Gross Revenue of approximately$820,347 dollars. The projected 2017 Gross Revenue is $836,754.

The Casino’s Net Operating Income (NOI) for 2016 was $152,149, and the projected 2017 NOI is $159,834.

The Projected Valuation of the Casino is $943,899, the Capitalization (CAP) Rate based on 2016 NOI is 16.1% and the CAP rate based on2017 Projected combined NOI will be 16.9%. If you isolate the Casino, it’s related value, based on Net Income would be approx. $1 million.

GAS STATION:The Border Inn Gas Station (Phillips 66), which includes the revenue from the Grocery store and Showers, had a 2016 Gross Revenue of ap-proximately $882,869 dollars. The projected 2017 Gross Revenue is $900,527.

The Gas Station’s Net Operating Income (NOI) for 2016 was 102,789, and the projected 2017 NOI is $106,771.

The Projected Valuation of the Gas Station is $637,684, the Capitalization (CAP) Rate based on 2016 NOI is 16.1% and the CAP rate based on2017 Projected combined NOI will be 16.9%.

With regard to the Motel:In determining the value per unit of the Motel, we deducted approximately $120,000 in value for the RV Park, and divided the remaining valueby the number of active units (about 26—others are used for employees). The value per unit, based on these calculations is approximately$9,256.

Average Occupancy varies based on season. The Peak Season for this area is from early June to late October. November and December arealso typically good months as well, but not as busy as the Peak Season months. The Low Season is typically January through March. Businessbegins to pick up in April and May, but are not as busy as the Peak Season. Occupancy rates are much higher on weekends and during specialevents. It is important to note that the current owners do not lower the nightly rates in the off season or shoulder seasons. The rates remain at$69 to $79 per night (depending on room) throughout the year. Please also note that there is no interactive on-line reservation system.

Average occupancy rates for this area fluctuate based on the season and weather, but have averaged between 55% and 60% for the last fewyears.

A complete financial package is available upon request once the Confidentiality Agreement has been signed.


INVESTMENT OFFERING





ADDITIONAL INFORMATION:

CASINO:The Border Inn Casino is run under an Unrestricted Gaming License. These Gaming Licenses cannot be transferred. A new Owner will haveto apply and be subject to the Nevada State Gaming Licensing requirements which include an extensive background check (which the appli-cant has to pay for). This application process can run between $20 and $30 thousand dollars. The Buyer will be expected to pay for this ap-plication and background check fee. The process can also take up to 6 months to complete. The current owners are willing to lease back thecasino portion of the property at closing until such time as the Buyer has finalized and secured the gaming license. Please also note that theBuyer may be able to secure a much simpler “Restricted” license which allows for 15 machines. The net revenues would be very close to thesame under this license structure.

There is also a Nevada State Liquor License in place which can be easily transferred to the new owners for a nominal fee.

All the slot machines (approx 38 with 8 new machines coming in 2017) are owned free and clear and will be transferred with the Property.

There is also a “game room” for teenagers and children. There are several leased pin-ball and electronic games as well as two pool tables anda few other entertainment items. Most of this equipment is leased on month to month contracts which can be transferred or terminated.


INVESTMENT OFFERING






INVESTMENT OFFERING



ECONOMIC SUMMARY AND VALUATION

See page 3 for actualplat of property.


INVESTMENT OFFERING



ADDITIONAL PROPERTY INFORMATION:

Property Location: Utah Address: US Hwy 50 & 6, at Utah/Nevada Border, Garrison, Utah 84728.The Nevada address is 3725 and 3777 East US Hwy 50 & 6, Baker, Nevada 89311The mailing address is: P.O. Box 30, Baker, Nevada 89311

Transient Occupancy Tax Rate: 4.25% of which 1% goes to help fund local activities and festivals.

Detailed Room Breakdown:2 - Double Bed Rooms with Kitchenette: 52 - Double Bed Rooms without Kitchenette: 4Queen Rooms with Kitchenette: 1Queen Rooms without Kitchenette: 6Employee Rooms: 3Smoking Rooms (included above): 3Trailers used for Employees: 6 - Double Bed with Kitchenette

4 - Double Bed without Kitchenette

Equipment: 2002 Chevy Silverado Pickup, 1989 Chevy Van, Massey Ferguson Tractor

Utilities:Electricity: MunicipalGas: PropaneWater: Well systemSewer: Septic systemTrash: CountyPhone/Internet: Private provider

Franchise: None

Parcel #s:Nevada: Parcel 12-240-03 (2.3 acres - developed) Parcel 12-240-04 (27.29 acres - undeveloped)

Both parcels are zoned general commercial use (Code 400)Utah: Parcel 6861-B (1.35 acres - developed)

Parcel 6861-C (25.09 acres - undeveloped)Both parcels are zoned general commercial

Flood Zone: The Property is not located within a Flood Zone.

Site Data: The property is a rectangular parcel with significant frontage on US Hwy 50 & 6 at the border of Nevadaand Utah—see page 3 for actual plat.


INVESTMENT OFFERING



EXECUTIVE SUMMARY (Continued)

EXTERIOR DETAIL:Foundation ConcreteFraming Concrete Slump Block and WoodExterior Stucco, Paint, PVC SidingParking Surface Asphalt and GravelRoof Flat PVC Liner and asphalt shingles on sloped

areas.Plumbing PVC, CopperIn-room heaters Each Unit with Central system in Main BldgHVAC Central in Lobby, PTAC in GuestroomsFire / Life / Safety Smoke Alarm, Fire Extinguishers, Fire Sprinklers

INTERIOR DETAIL:Heating System PTACCondition of Heating System GoodCooling System PTACCondition of Cooling System GoodType of Bath/Shower CombinationCondition of Bath/Shower GoodBathroom Tile Type LinoleumCondition of Bathroom Tile GoodType of Furniture Older wood FurnitureCondition of Furniture PoorWindow Coverings DrapesCondition of Window GoodRoom Floor Coverings Carpet and linoleumCondition of Floor Coverings FairWall Coverings Wood Paneling, with picturesCondition of Wall Coverings FairMicrowave/Refrigerator Yes, In all RoomsCondition of Electronics FairInternet Access WI-FI

All rooms include; cable televisions, mini-fridges, microwave, free wifi, dresser drawers, luggage-storage areas, andsome rooms have kitchenettes. The walls are paneled with wood paneling and include photos and paintings of land-scape features. The window treatments are draw draperies. Each room has an individually controlled electric HVACsystem. Motel amenities include complimentary breakfast in full service restaurant, ample parking for standard vehi-cles as well as oversized vehicles (including 18 Wheelers), gas station on premises, casino and bar on premises, busi-ness center, conference/meeting rooms, a guest laundry facility (two washers and two dryers), groceries and gift shop,just a few minutes from Great Basin National Park and Lehman Cave.


INVESTMENT OFFERING





TOURISM AND DEMOGRAPHICS:There are 15 major points of interest that draw approximately 16 million “visitations” per year. These visits repre-sent approximately 5 to 7 million tourists per year. The State of Utah has determined that these visitors stay an aver-age of 3.5 nights and spend on average $89 per day. (see additional tourism Info attached)

In addition, the State of Utah has projected the growth in Southern Utah will exceed 600,000 by 2050. Current popu-lation base is approximately 250,000. Baker and Garrison’s population is currently at approximately 10,118. Thisarea is more remote than the I-15 Corridor communities and will not likely experience the same population growth,but there should be some positive growth influenced by the increasing populations in the surrounding larger commu-nities..

The Primary draw to this area is the Great Basin National Park and the Lehman Cave. This National Park has seen anincrease over the last year (2015) of more than 29%, and a 42% increase in visitations since 2000. Visitations arenow up to over 120,000 per year. One of the major inhibitors to increasing the tourism to this location is the lack offacilities. The Border Inn is the largest and nicest of the accommodations in an hour to hour and half driving radius.The park officials are anxious to work with a local group in providing larger and nicer accommodations for futuregrowth. Other than two relatively small RV parks and 4 campgrounds (two of which are within the national park),there are only approximately 40 motel rooms, most of which close down in the winter time. The Border Inn is theonly facility that remains open year round.

There are also two Regional Airports, one in Cedar City (about 2 hours) and the other in St. George (about 3 hours)

Some of the key points of interest for this area are::Within 2 hours or less: Great Basin—120,000: Brian Head Ski Resort: Eagle Point Ski Resort : Bryce Canyon :Zion National Park: Fish Lake

Within 3 Hours or Less: Grand Canyon: Escalante Grand Staircase: Vermillion Cliffs: Capital Reef: Great Salt Lake:

Major Communities within 3 hours or less: Salt Lake City, Las Vegas, Park City, St. George, Cedar City, Ely, Elko.

ADDITIONAL INFORMATION:

CASINO:The Border Inn Casino is run under an Unrestricted Gaming License. These Gaming Licenses cannot be transferred. A new Owner will haveto apply and be subject to the Nevada State Gaming Licensing requirements which include an extensive background check (which the appli-cant has to pay for). This application process can run between $20 and $30 thousand dollars. The Buyer will be expected to pay for this ap-plication and background check fee. The process can also take up to 6 months to complete. The current owners are willing to lease back thecasino portion of the property at closing until such time as the Buyer has finalized and secured his gaming license.

There is also a Nevada State Liquor License in place which can be easily transferred to the new owners for a nominal fee.

All the slot machines (approx 40) are owned free and clear and will be transferred with the Property.

There is also a “game room” for teenagers and children. There are several leased pin-ball and electronic games as well as two pool tables anda few other entertainment items. Most of this equipment is leased on month to month contracts which can be transferred or terminated.


INVESTMENT OFFERING






INVESTMENT OFFERING






INVESTMENT OFFERING


St. George, Utah 84770For more information please call JEFF REBER 435-656-8238

email at: [email protected]


INVESTMENT OFFERING






INVESTMENT OFFERING

BORDER INN


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utah/nevada state line (us hwy 50 & 6) investment...

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