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220 Broadway Ave S, Rochester, MN 55904
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01
Mayo Clinic is the powerhouse of Rochester, ranking as the best hospital in the world, as well as holding top rankings in fourteen different specialties. Mayo has invested $934 million in Rochester since 2013, with $172 million invested in 2022 alone. Guests have convenient, covered access to the Mayo Clinic via the skyway and underground walkway, leading the Hotel Indigo Rochester to be a premier lodging option for Mayo Clinic-related travel.
Investment Highlights
LOCATION
MOORESVILLE, NC | TOWNES AT LAKE NORMAN
DEMAND DRIVER
Trane Technologies - North America Headquarters
From the Property
JOBS SUPPORTED
8.9mi
1.1k
Square-Foot Occupied
620k
NGK Ceramics USA, Inc.
From the Property
JOBS SUPPORTED
5.5mi
850
Square-Foot Facility
293k
From the Property
JOBS SUPPORTED
5.0mi
750
STUDENTS ENROLLED (FALL 2022)
Lake Norman Regional Medical Center
123
MOORESVILLE, NC | TOWNES AT LAKE NORMAN
JOBS SUPPORTED
2.5k
Schools and Centers
38
STUDENTS Served
20.3k
Lakeshore ES | Lakeshore MS | Lake Norman HS
PRIMARY EDUCATION
MOORESVILLE, NC | TOWNES AT LAKE NORMAN
NEIGHBORHOOD CONVENIENCES
Within a two-mile drive of the property
MOORESVILLE, NC | TOWNES AT LAKE NORMAN
NEIGHBORHOOD SHOPPING
Retail Stores
60
Dining Options
60
From the Property
0.6mi
Target | Walmart Supercenter | Kohl’s | Sam’s Club | Best Buy
MOORESVILLE, NC | TOWNES AT LAKE NORMAN
NEIGHBORHOOD QUICK FACTS
Iredell County Unemployment Rate(*Preliminary for February 2023)
3.4%*
Median Household Income
(Within Three Miles)
$85.2k
Renter Occupied Housing Units (Within Three Miles)
25%
Population
(Within Three Miles)
31.7k
Median Housing Unit Value (Within Three Miles)
$466.3%
QUICK FACTS
SHOPPING
CONVENIENCES
PRIMARY EDUCATION
DEMAND DRIVER
GALLERY
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
Lindsey deButts
Senior Director
240.204.5133
lindsey.debutts@berkadia.com
Financing:
John Testerman
Senior Director
919.436.2793
john.testerman@berkadia.com
125 S Wacker Dr Ste 400
Chicago, Il 60606
MELISSA TSOURMAS
Associate Director
312.845.1889
melissa.tsourmas@berkadia.com
RYAN LINDGREN
Managing Director
312.845.1884
ryan.lindgren@berkadia.com
RALPH DEPASQUALE
Minnesota Broker Of Record License #40414059
Investment ADVISORS:
CONTACT Us
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THE PROPERTY
THE OPPORTUNITY
Berkadia’s Hotels & Hospitality Group is pleased to offer, on an exclusive basis, the opportunity to acquire the fee-simple interest in the Hotel Indigo Rochester - Mayo Clinic (the “Hotel Indigo Rochester”, “Hotel Indigo,” “Hotel” or “Property”). Previously a Holiday Inn, the Property was converted to the Hotel Indigo flag in January 2020 through a $20 million ($112,000/key) renovation. The Hotel offers both above and below ground, direct access to the Mayo Clinic, which ranks as the World’s Best Hospital by Newsweek, and has ranked as the Nation's Best Hospital by U.S. News & World Report for seven consecutive years.
Following the recent reflagging which positioned the asset on the runway to stabilization, there is a unique opportunity for a buyer to step into a newly renovated asset with irreplaceable connectivity to the world-renowned hospital.
Hotel Indigo Rochester - Mayo Clinic
Visit Doc Center
Direct Connectivity to Mayo Clinic, the World's Best Hospital
02
Recently Converted Premium Branded Asset
The Hotel Indigo Rochester underwent a $20 million renovation in January 2020, which rebranded the prior Holiday Inn under the Hotel Indigo flag. The capital touched all guestrooms and public spaces, resulting in a like-new product that will require a minimal change of ownership PIP upon sale. Notably, the Hotel now features CRAVE American Kitchen & Sushi Bar. The on-site restaurant is regarded as a premier outdoor/indoor eating and event space in Rochester and attracts demand from guests, visitors, and the local community.
03
Nonexistent Future Supply Picture
There are currently no hotels under construction in Rochester, positioning the Hotel Indigo as one of the newest properties in the area with no additional competition in the pipeline.
04
Return to Strong Submarket Performance Fundamentals
The Hotel Indigo’s competitive set is moving towards a full recovery to its strong pre-COVID performance. The competitive set saw occupancy of nearly 74% at a rate of $188.68 in 2019, reaching a RevPAR that was 78% higher than the broader Rochester submarket. This can be largely attributed to the location of the competitive set hotels which are situated directly around Mayo Clinic.
05
Offered Management Unencumbered with Condo Fee Simple Interest
The Hotel is being offered unencumbered of management and non-union, along with being condo fee simple, providing flexibility and optionality to a new investor.
CHICAGO OFFICE
02
The Hotel Indigo Rochester underwent a $23 million renovation in January 2020, which rebranded the prior Holiday Inn under the Hotel Indigo flag. The capital touched all guestrooms and public spaces, resulting in a like-new product that will require a minimal change of ownership PIP upon sale.
Recently Converted Premium Branded Asset
03
There are currently no hotels under construction in Rochester, positioning the Hotel Indigo as one of the newest properties in the area with no additional competition in the pipeline.
Nonexistent Future Supply Picture
04
The Hotel Indigo’s competitive set is moving towards a full recovery to its strong pre-COVID performance. The competitive set saw occupancy of nearly 74% at a rate of $188.68 in 2019, reaching a RevPAR that was 78% higher than the broader Rochester submarket. This can be largely attributed to the location of the competitive set hotels which are situated directly around Mayo Clinic.
Return to Strong Submarket Performance Fundamentals
05
The Hotel is being offered unencumbered of management and non-union, along with being condo fee simple, providing flexibility and optionality to a new investor.
Offered Management Unencumbered with Condo Fee Simple Interest
Rochester, MN - Supply Timeline (2018-2024)
2024
2023
2022
2021
2020
2019
2018
- 168 keys
• Brentwood on 2nd
(66 keys)
• Ray Mar Hotel (31 keys)
• Home2 Suites by Hilton Rochester Mayo Clinic Area
(103 keys)
+ 103 keys
- 50 keys
• Traveler's Hotel
(50 keys)
• Candlewood Suites Rochester Mayo Clinic (89 keys)
• Hilton Rochester Mayo Clinic (264 keys)
+ 353 keys
-292 keys
• Riverview Suites (60 keys)
• Clarion Inn Rochester
(192 keys)
+ 80 keys
- 0 keys
• EVEN Hotel Rochester - Mayo Clinic Area (134 keys)
• TownePlace Suites By Marriott Rochester MN (110 keys)
• Staybridge Suites Rochester - Mayo Clinic Area (116 keys)
• Hyatt House Rochester/Mayo Clinic (172 keys)
+ 532 keys
- 212 keys
• DoubleTree by Hilton Hotel Rochester - Mayo Clinic Area (212 keys)
+ 0 keys
• Residence Inn Rochester Mayo Clinic Area* (97 keys)
- 0 keys
+ 97 keys
• Studio 6 Rochester,
MN** (108 keys)
- 0 keys
+ 108 keys
Kyle Stevenson
Managing Director
786.646.2591
kyle.stevenson@berkadia.com
MILES MATALON
Real Estate Analyst
301.656.2451
miles.matalon@berkadia.com
Larissa Isenberg
Real Estate Analyst
301.656.2451
larissa.isenberg@berkadia.com
Mauricio Rodriguez
Managing Director
240.204.5133
mauricio.rodriguez@berkadia.com
2018-2024 Net Supply Change:
+551
Total Keys Added:
1,273
Total Keys Removed:
772
*Residence Inn Rochester Mayo Clinic Area opened in March 2023
**Studio 6 Rochester, MN is in final planning