Offering.memorandum

CAMBRIA, CA

Bluebird Inn

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CAMBRIA, CA

Bluebird Inn

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR

MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

TABLE OF CONTENTS

Bluebird Inn

Bluebird InnCAMBRIA, CA

PRICING AND FINANCIAL ANALYSIS

FIRST TRUST DEED

Loan Amount $3,800,000

Loan Type Proposed New

Interest Rate 6.0%

Amortization 30 Years

Program SBA

Annualized Operating Data

Income Current % of GR

Room Revenue $870,019

Other Revenue $997

Gross Revenue $871,016

Total Expenses $505,491

Net Operating Income $365,525

Debt Service $266,200

Debt Coverage Ratio 1.37

Net Cash Flow After Debt Service 6.21% / $99,325

Principal Reduction $45,436

Total Return 9.05% / $144,761

1880 Main Street

Cambria, CA 93428

Price $5,400,000

Down Payment 29.6% / $1,600,000

Total Number of Rooms 37

Price/Room $145,946

Occupancy 74.0%

ADR $125.00

Available Rentable Rooms 37

CAP Rate - Current 6.77%

RRM - Current 6.21

Year Built/Renovated 1920 / 1996

Lot Size 1.1 Acres

Type of Ownership Fee Simple

Location

1

Financing


Loan information is time sensitive and subject to change.

Contact your local Marcus & Millichap Capital Corporation

representative.


This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 V0400133 Marcus &Millichap. All rights reserved.

FINANCIAL OVERVIEW

2



Current PAR

Occupancy 74.0%

ADR $125.00

Income

Room Revenue $870,019 $23,514

Other Revenue

Other Revenue $997 $27

Total Other Revenue $997 $27

GROSS REVENUE $871,016 $23,541

$219,502 $5,932

$214,179 $5,789

$71,810 $1,941

TOTAL EXPENSES $505,491 $13,662

NET OPERATING INCOME $365,525 $9,879

Total Number of Rooms 37

Available Rentable Rooms 37


INCOME AND EXPENSES

3




Current POR PARPro

Forma POR PAR

Advertising $10,372 $280.32

Bank Card Fees $29,995 $810.68

Bonus $3,700 $100.00

Consulting $1,180 $31.89

Contributions/Donations $4,940 $133.51

Dues $1,337 $36.14

Gardening $2,685 $72.57

Insurance $21,258 $574.54

Insurance - Workman's Comp $12,833 $346.84

Laundry $62,452 $1,687.89

Licenses and Permits $34 $0.92

Maintenance and Repair $19,488 $526.70

Office Supplies and Outside Services $1,320 $35.68

Payroll Taxes - Federal $13,791 $372.73

Payroll Taxes - State $4,434 $119.84

Postage, Printing, etc. $1,009 $27.27

Professional Fees - Accounting $3,630 $98.11

Professional Fees - Legal $886 $23.95

Subscriptions $1,233 $33.32

Supplies $42,780 $1,156.22

Taxes - Property $35,186 $950.97

Telephone $4,674 $126.32

Utilities - Cable $11,847 $320.19

Utilities - Disposal $2,479 $67.00

Utilities - Gas $10,158 $274.54

Utilities - PG&E $12,834 $346.86

Utilities - Water $13,420 $362.70

Wages $173,023 $4,676.30

Other Expenses $2,513 $67.92

TOTAL EXPENSES $505,491 $13,661.92

DETAILED EXPENSES

4

PROPERTY DESCRIPTION



PICTURE PAGE 2

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PICTURE PAGE 2

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PICTURE PAGE 2

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PICTURE PAGE 2



Bluebird Inn is a very charming lodging facility located in the heart of downtown Cambria. It is situated on Main Street in the center of Cambria and within walking distance to shops and restaurants.

The original inn was built in the 1920's but additions and improvements have been made over the years. The property sits on an 1.1-acre parcel and houses five separate buildings that comprise 37 accommodations, which are a mix of single rooms, double rooms, deluxe rooms, suites and a storage room. The price includes an adjacent undeveloped 0.89-acre parcel.

A sixth building houses the reception and lobby and the manager's/owner's quarters that have 1,700 square feet of living space, including two bedrooms, two bathrooms, a full kitchen and a den/office area.

Nestled among towering pines and the shimmering sea on California’s Central Coast, Cambria is a picturesque village that unfolds along scenic Highway 1 between San Francisco and Los Angeles, just four miles south of the famous historic landmark Hearst Castle. Free of chain stores and brimming with charm, Cambria invites you to exit the beaten path and explore one of California’s truly unique destinations.

Investment Highlights

■ A Landmark Cambria Lodging Destination

■ Located on Main Street in downtown Cambria

■ Pride of Ownership in Upkeep of Property

■ Good Opportunity for New Hands-On Operator

■ Spacious Lodging Facility for Owner/Operator

■ Upside Potential

■ Includes Adjacent Undeveloped 0.89-Acre Parcel

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INVESTMENT OVERVIEW

The Offering

Property Bluebird Inn

Property Address 1880 Main Street

Cambria, CA 93428

Assessor's Parcel Number 013-251-004

Site Description

Year Built/Renovated 1920 / 1996

Lot Size 1.1 Acres

Type of Ownership Fee Simple

Parking Ample

Handicapped Parking 1

Truck Parking None

Property Tier Suburban

Location Type Downtown

Transient Occupancy Tax Rate 11 %

AAA Diamond Rating 2 Diamond

Room Breakdown

Regular room with 1 queen bed 8

Regular room with 1 king bed 5

Regular room with 2 double beds 10

Two-room suite with 4 double beds 1

Deluxe room with 1 kind bed and creekside view 9

Deluxe room with 2 queen beds 2

Deluxe suite with living room and 1 king bed 2

11




PROPERTY SUMMARY

Construction/Mechanical

Foundation Stucco with Board Siding

Framing Wood Frame

Exterior Exterior CorridorParking Surface Asphalt

Roof Composition Shingle

Transportation

Highway CA Highway-46CA Highway-1

Airports San Luis Obispo

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OPPORTUNITY

The property presents a huge upside potential. The current owner maintains a very basic website

- www.bluebirdmotel.com.

The current owners do not do any online marketing and there are no online promotions and

deals to increase occupancy.

They are totally dependent on repeat business and walk-in customers.

In developing a proper website that is more appealing and having a booking engine will draw

more business. Also, using social media initiatives will also help in filling up more rooms.

The property does not even have a property management system in place. All bookings and

guest check-in and registrations are done manually.

By possibly having a social hour in the evening with beer & wine and adding a breakfast

program, the ADR ( average daily rate ) can be increased.

Room Amenities

13

■ 32-Inch Flat-Screen TV

■ Premium Channels

■ Heating■ Ironing Board and Iron

■ Refrigerator

■ WiFi in all Rooms

■ Deluxe Rooms have Microwaves

■ Deluxe Rooms have Coffee and Tea Makers

■ Deluxe Rooms have Fireplaces

■ Deluxe Rooms have Creekside Views

■ Smoking Rooms are Available

■ Pet-friendly Rooms are Available



■ Front Desk Hours: 7:30 AM till 10:00 PM

■ Ample On-Site Parking

■ WiFi on Property and in all Rooms

■ Pet-Friendly Property

■ Smoking Room Available

■ Choice of Regular Rooms, Deluxe Rooms and Suites


FEATURES AND AMENITIES

Common Area Features

Local Map Regional Map

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AREA MAPS

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AERIAL PHOTO


RECENT SALES

1)

2)

3)

4)

Bluebird Inn

Old Saint Angela Inn

Butterfly Grove Inn

Cambria Palms Motel

Burton Inn

17

RECENT SALES



RECENT SALES MAP

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Subject ButterflyGrove

Inn

18

RECENT SALES

AVERAGE CAP RATE



CAP RATE AND RRM

0

30,000

60,000

90,000

120,000

150,000

180,000

210,000

240,000

Subject OldSaint

AngelaInn

ButterflyGrove

Inn

CambriaPalmsMotel

BurtonInn

19

RECENT SALES


AVERAGE PRICE/ROOM


REVPAR AND PRICE PER ROOM

1

2

Bluebird Inn

1880 Main Street

Cambria, CA 93428

Old Saint Angela Inn

321 Central Avenue

Pacific Grove, CA 93950

Butterfly Grove Inn

1073 Lighthouse Avenue

Pacific Grove, CA 93950

Subject Property

Close of Escrow: 03/13/2014 Sale Price: $2,245,000

Total Rooms: 9 Price/Room: $249,444

Year Built: 1997 CAP Rate: N/A

Occupancy: N/A RRM: N/A

ADR: N/A Rack Rate: N/A

RevPAR: N/A

20



Year Built/Renovated: N/A CAP Rate: 7.49%



RevPAR: N/A

RECENT SALES


Total Rooms: 37 Sale Price: $5,400,000

Year Built/Renovated: 1920/1996 Price/Room: $145,946

Occupancy: 74.0% CAP Rate: 6.77%

ADR: $125.00 RRM: 6.21

RevPAR: Rack Rate:


RECENT SALES

N/A N/A

Comments

This property is located on the same street as the Bluebird Inn. Except for its location proximity, this property is not a

good comparison to the Bluebird Inn.

4

Cambria Palms Motel

2662 Main Street

Cambria, CA 93428

Burton Inn

4022 Burton Drive

Cambria, CA 93428

Comments

This is a distressed property.

3



Year Built/Renovated: N/A CAP Rate: N/A



RevPAR: N/A

Close of Escrow: On Market Sale Price: $2,499,000


Year Built/Renovated: N/A CAP Rate: N/A



RevPAR: N/A

21

RECENT SALES



RECENT SALES

CAMBRIA, CA

OFFERING MEMORANDUM

Bluebird Inn

Offices Throughout the U.S. and Canada

www.MarcusMillichap.com

Presented By:

Kent WilliamsBroker

Marcus & Millichap, San DiegoLicense: CA: 00823860

Tel: (858)373-3100Fax: (858)373-3110

Offering.memorandum

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