Hotel Conversion Project

[Justin Elliott]

Last week we closed on a 32 unit hotel that we are converting to an apartment building in Craig, Colorado.  It's a joint venture with a few partners with one partner handling the bulk of the workload when it comes to upgrades on the interior and exterior upgrades necessary.   Here are a few reasons we think this deal has potential.  

• Craig NEEDS housing. There are a-lot of mining and ski resort jobs nearby and Craig is the main hub and county seat. 
• Hotels like this have struggled in the past year or so with COVID 
• This building is simply worth more as an apartment building.  Purchase price was $700k.  Although it appraised at $1m.  We are planning to put $300k in improvements. We believe we can refinance in the $2m-$2.5m range.  
• We're excited to execute the business plan on this one to hopefully bring more opportunities like this to our investors.  Stay tuned!
• Justin

[Justin Elliott]

@Frank Konsella With coal plants winding down towards a 2028 and 2030 close it better not take longer than that. I’m encouraged by the efforts they are putting in now to prepare for the closures. But it’s proceed with caution. You are in a good position now to monitor things in order to make a decision.