Another Carson City motel property changed ownership last week.
Sale of the Super 8 in Motel represents the third distressed motel in Carson City sold in the past few years, says Len Ramos, first vice president of the multi-housing group with CBRE in Reno. Ramos brokered each sale transaction.
Many of the motel properties in Carson City have come under financial duress due to declining occupancy and room rates brought about by several newer properties that recently have come on line, Ramos says.
The Super 8 Motel at 2829 S. Carson St. was on the market for roughly 90 days, with several interested parties vying for the property, Ramos says.
General Electric Capital Corporation sold the 63-room property to an undisclosed Sacramento-based operator for $800,000.
"Most of these motels are suffering from the decline in the economy," Ramos says. "They were not able to service their debt and were foreclosed upon."
Ramos says the $800,000 sale price represents a significant value investment.
Most of the deals for similar properties are being done in cash due to lenders' lack of interest in financing sales of smaller motels, he adds.
"There are not a lot of lenders out there if any that will lend on these types of assets. The only financing they would consider is an SBA loan, where you have an owner-operated type of business. If lending was available you would see an increase of 10 percent in pricing, but because there is very little interest in lending it forces an all-cash deal, which tends to discount transaction price."
