Embedded Files
Text Sharon-Lee A Smith 757-354-4356 for more information
Route 66
Iconic Hotel contract available for purchase
on Historic Route 66 in Kingman AZ
Iconic Hotel contract available for purchase
on Historic Route 66 in Kingman AZ
The section of Route 66 which runs through Kingman Arizona offers
the longest remaining preserved stretch of Old U.S. Route 66 left in the United States.
The Arcadia Lodge is one of those iconic sites seen as the majesty of days past.
In the last 3-5 years, economic and infrastructure development in Kingman has led to
this small town on the cusp of explosive growth and development.
With at least three potential key development and/or restoration plays,
this investment opportunity offer several options for exponential returns.
Let's take a look!
History of Building
History of Building
The Arcadia Lodge is a rare survivor of a simpler age. Taking us back to 1938, the icon once known as
Arcadia Court emerged as a pioneer in the developing hotel and motel market.
With originally 15 rooms around a hacienda-styled courtyard, Arcadia Court advertised
luxurious furnishings and the fines accommodations for the fastidious guest.
The structure later expanded to 47 air conditioned units (one of the first air conditioned motels of its time as well)
and was renamed the Arcadia Lodge.
In the late 1950's, the lodge added the first swimming pool at a motel in the town of Kingman, becoming the peak of luxury of its time.
Today, the Lodge's capacity sits at 46 rooms including one (1) 2-bed, 2-bath suite with full kitchen,
five (5) 1-bed, 1bath suites with full kitchen, and forty (40) studio 1-bath with kitchenettes
Attraction to Kingman - Tourism and Business
Attraction to Kingman - Tourism and Business
Proximity to Los Angeles, Las Vegas, Phoenix, Grand Canyon West, The Grand Canyon, and The Colorado River makes Kingman Arizona attractive for tourism, manufacturing, warehousing/distribution, and transportation industries alike.
TOURISM: Outdoors tourism is robust in and around Kingman. The Cerbat and Haulapai mountains offer camping, mountain biking, off-roading, hiking, picnicking, and other outdoor activities. Access passes to Grand Canyon West and the glass bridge known as the Skywalk are provided in Kingman. Fishing, boating, and kayaking are also within an hour of Kingman. Visitors will find these activities on the Colorado River, Lake Havasu and Lake Mead recreation areas. Other interesting sights include gaming in Laughlin NV, the White Cliffs Wagon Trail, and the Living Ghost Town of Oatman - who doesn't want to visit a ghost town?!
BUSINESS: Kingman is seen as a strategic point between major cities in the Southwest area of the country. Kingman's location allows a trucker to drive to Los Angeles and return in a single day. In addition to transient accommodations for travelers and truckers, both temporary housing for construction workers and affordable longer term housing for warehouse and dock workers is a rising need.
Interstate Warehousing, one of the largest refrigerated warehouse companies in the world, just brought 70+ new jobs to the area by constructing a brand new 273,000sqft facility on a 92-acre site in Kingman, and plans to expand its facility up to 1.2M sqft in the next 4 years, bringing with it several more job opportunities. (See https://www.azcommerce.com/news-events/news/2022/12/interstate-warehousing-breaks-ground-on-new-facility-in-kingman/ )
Kingman Industrial Park houses several major employers, including American Woodmark Corporation (a cabinetmaking shop), Laron Incorporated (a manufacturing machine shop), Cantex, Inc. (a pipe manufacturing plant), and several other manufacturing facilities, as well as housing distribution warehouses for True Value Hardware Company, Pepsi Cola Inc., and Dillon Transportation, LLC (see https://www.choosekingman.com/workforce/major-employers/ )
Other Development and Improvement
Other Development and Improvement
There are many reasons to relocate to Kingman. (See https://www.choosekingman.com/relocate/ )
Local community facilities include ten parks, lighted tennis and racquetball courts, shuffleboard areas, bocce ball fields, horseshoe courts, two golf courses, a bowling alley, a museum, a senior center, a resource center, and a library. There are two public swimming pools as well. Arcadia Lodge also has a pool, which could be the third public swimming pool (see potential business and exit strategies below)
Since 1999, Arizona DOT has completed 20 projects to modernize US 93 between Wickenburg and I-40 (Historic Route 66). The interchange project in Kingman will allow for free-flowing traffic connection between US93 and I-40 and includes 48 miles of new pavement on I-40 right in front of the Arcadia Lodge, making access easy and attractive to travelers and locals alike. (See https://azdot.gov/news/i-40us-93-kingman-interchange-project-reach-halfway-point-2025 and https://azdot.gov/projects/northwest-district-projects/northwest-regional-improvements-us-93-and-i-40 )
Other Similar Businesses (The Comps and The Competition)
Other Similar Businesses (The Comps and The Competition)
Harmony Village Apartments: The benchmark comparable property/project. This motel conversion remodeled/updated its 39 studio 1-bath with kitchenette units. Purchased in the low $1M and fully renovated, this property resold (flipped) for $3.8M. At a current 95% occupancy rate with mid- to long-term tenants with units renting between $950-$1200/month, this property's new owner fills vacancies with short term/transient stays at $120-$200/night between AirBNB and corporate stays.
Tin Can Alley AirBNB Airstream Park was recently approved to construct and is well underway setting refurbished vintage Airstreams and erecting patios and common areas for cottage-like stays in downtown Kingman. Pricing to be determined.
El Trovatore Motel offers 38 Hollywood themed rooms refurbished in 2019 but not modernized, this motel stayed with period time-pieces. Offering nightly stays starting at $66 and going up to $96/night this fun themed motel is a sight to be seen.
Arizona Inn, Ramblin Rose Motel, and The Silver Queen Inn all offer similar, not modernized, not refurbished rooms ranging in price from $62 to $180 per night, depending on room size and number of guests staying.
Kingman Station Apartments similar to Harmony Village offers studio, one, and two bedroom units ranging from 365sqft to 701sqft and ranging in price from $1075-$1265/month. https://www.kingmanstationapts.com/floorplans shows their unit sizes and layouts.
Quick searching on AirBNB shows a robust range of stays available ranging from the upper $60's well into the mid $200's, depending on level of renovation and modernization. Explore listings for ideas!
Current Business and Building Conditions
(and where there is room to improve)
Current Business and Building Conditions
(and where there is room to improve)
INCOME: Unit occupancy includes 30 tenants in month-to-month arrangements with rent of approximately $600/month (about half of market rent). Two units are in the process of eviction, and the "property manager" does not pay rent. Owner reports current gross rent income at $17,950/month and current vending machine commission at $800/year
EXPENSES: Property taxes $4700/annually, Electricity $3500/month, Water, sewer, and trash $2400/month, (tenants pay their own cable), Payroll/Management fee $2200/month, Gas $500/month brings total monthly expenses in approximately $8,600
CAPEX/DEFERRED MAINTENANCE: 36 units currently in "livable" condition. 10 units are uninhabitable due to maintenance needs.
All units need to be updated. Three roofs in fair to good condition. One roof has active leaks. Find pictures here: https://drive.google.com/drive/folders/1aL4LHvKe7yOzkcUcaaHsXXHXcB_hRgCp?usp=sharing
MANAGEMENT: Current "property manager" is a long-time tenant who collects rent, notifies the owner of maintenance issues, and performs minor maintenance. Her services are performed in exchange for reduced rent for her unit as well as receives a monthly fee.
NO Professional Property Management services, Housekeeping services, or Maintenance services.
MARKETING AND ADVERTISING: NO Google Business Listing, Yelp listing, Travelocity listing, AirBNB listing, FourSquare, Bing, Yellow Pages - none of them. Even the MapQuest profile which is unclaimed says Arcadia Lodge is out of business.
NO Social Media - all pages, groups, and profiles in existence are false, unclaimed, and not managed.
NO Website (which is why I purchased this domain - you can have this domain at closing - my gift to you!)
RENOVATIONS
RENOVATIONS
This old girl could use some help to restore her to her majestic beauty of days past!
Contractors have quoted between $500,000-$600,000 for a full renovation to get her
up to code and modernized like Harmony Village Apartments.
Your budget may vary.
THE ROOMS:
STUDIO 1-BATH WITH KITCHENETTE (40): Modern waterproof LVP throughout, updated electrical and plumbing fixtures, undercounter refrigerator and countertop cooktop, windows, doors, trim, hardware, paint, and a PTAC or mini-split along with furnishings.
Approx $10k per unit. $400,000 budget
1-BED 1-BATH WITH KITCHEN (5): Modern waterproof LVP throughout, updated electrical and plumbing fixtures, 12cuft refrigerator and 24" (small) stove, windows, doors, trim, hardware, paint, and a PTAC or mini-split along with furnishings.
Approx $15k per unit. $75,000 budget
2-BED 2-BATH WITH KITCHEN (1): Modern waterproof LVP throughout, updated electrical and plumbing fixtures, 20cuft refrigerator and 30" (standard) stove, windows, doors, trim, hardware, paint, and a PTAC or mini-split along with furnishings.
Approx $20k per unit. $20,000 budget
THE FIVE MAJORS:
ROOF: There are four roofs. Three are in fair to good shape. One has active leaks.
HVAC: There is no central air conditioning.
Each occupied unit has individual air conditioning units.
There is a hydronic heating system which provides heat and
hot water to the units and main/common areas.
ELECTRICAL: Some updating done. Should have brought to code.
PLUMBING: Some updating done. Should have brought to code.
FOUNDATION: Minor settling cracks, no major concerns.
Picturelink again for reference: https://drive.google.com/drive/folders/1aL4LHvKe7yOzkcUcaaHsXXHXcB_hRgCp?usp=sharing
Financial Projections:
Why is this a good deal?
Financial Projections:
Why is this a good deal?
SHORT TERM PROJECT (FLIP): Purchase Price $1.25M,
Renovation Quote (to include remodel similar to Harmony Village): $500-600k,
Holding costs (to include interest payments, utilities, back end commissions): $250k
Conservative Resale Price: $4.6M ($100k/door),
Estimated Short Term Profit: $2,500,000.00!
LONG TERM PROJECT (BUY AND HOLD)
Long Term/Mid Term Rent projections:
(1) 2-bed 2-bath full kitchen market rent: $1,300/month
(5) 1-bed 1-bath full kitchen market rent: $1,200/month
(40) Studio 1-bath kitchenette rent: $1,000/month
Vending Machine and Coin Laundry (5 washer, 5 dryers): $125/month
Potential Gross Monthly Income at 90% Occupancy: $46,695/month
Short Term/Nightly Rent projections:
(1) 2-bed 2-bath full kitchen market rent: $115/night
(5) 1-bed 1-bath full kitchen market rent: $95/night
(40) Studio 1-bath kitchenette rent: $75/night
Vending Machine and Coin Laundry (5 washer, 5 dryers): $125/month
Potential Gross Monthly Income at 70% Occupancy: $75,390/month
Day Pass - Public Pool projections:
Daily Pool Pass: $35/day estimated 25 people per day
Projected Gross Monthly Day Pass Income: $26,250/month, seasonally. $10,000/month average.
PROJECTED conservative MIXED USE and DAY PASS GROSS MONTHLY INCOME: $75,000
Expense projections:
Professional Property Management at 10% Gross Receivables: $6,000/month
Marketing and Advertising: $1,500/month
Housekeeping: $2,500/month
Maintenance: $1,000/month
Electricity: $3,750/month
Water/Sewer/Trash: $2,500/month
Cable/Internet: $3,000/month
Gas: $750/month
Taxes: $420/month
Insurance: $500/month
Potential Monthly Expenses: $22,000/month
PROJECTED NET OPERATING MONTHLY INCOME: $53,000
PROJECTED NET OPERATING ANNUAL INCOME: $636,000
DEVELOPMENT PLAY: Purchase price includes 50% ownership of the 0.85acre parcel directly behind Arcadia Lodge.
This parcel houses the hydronic heating system in a small building, but is otherwise vacant.
Expansion of the Lodge to include new buildings could create even greater opportunity!
(BUT WAIT - IT GETS BETTER!)
Possible FREE FUNDING Sources
Available Grant Programs for Route 66 Restoration
Possible FREE FUNDING Sources
Available Grant Programs for Route 66 Restoration
The Route 66 Corridor Preservation Act of 1999 enabled a grant funding program administered through the National Park Service. Each year they have a budget ($120,000 in 2024) to award grants to restoration and preservation projects along this historic highway. Several previous awards have gone to private business owners. Find information on the National Park Services website.
Preserve Route 66 Legacy Business Fund provides grants to businesses to preserve historic places and spur economic development along the Route 66 corridor. Preserve Route 66 Grant Fund provides financial support to public agencies, tribal governments, or non-profit organizations to preserve historic places along the Route 66 corridor. Application for these and more can be found at https://savingplaces.org/preserve-route-66 the National Trust for Historic Preservation website.
The Arizona Community Foundation in cooperation with the Historic Route 66 Association of Arizona administers a grant for projects that aim to preserve, restore, and rehabilitate iconic and historic places along this very stretch of Route 66 (application dates are coming up fast!) Complete profile and apply at www.azfoundation.org
The Historic Route 66 Cost Share Grant is available on a rolling basis. You can apply at https://www.historic66az.com/grants/ and/or Email nikki@historic66az.com
The Road Ahead Route 66 Extraordinary Women Micro-Grant program awards grants to extra ordinary women who live, work, and travel the Mother Road, focused on promotion, preservation, research/education, and the economic development of Route 66. https://roadahead.route66centennial.org/index.php/marquee-programs/extraordinary-women-grant-program
The Road Ahead also has the Route 66 Black Experiences Grant Program available for black owned/operated businesses/attractions. https://roadahead.route66centennial.org/index.php/marquee-programs/black-experience-grant-program
There are so many more grant programs specific to Route 66 that it is difficult to even list them all.
I can refer you to an excellent grant writer to assist you in
finding, applying for, and receiving these and other grants after closing.
PURCHASE OF CONTRACT
STARTING PRICE: $1,250,000.00
PURCHASE OF CONTRACT
STARTING PRICE: $1,250,000.00
EMD: $12,500.00
Close of Escrow: March 20, 2025
Title & Escrow: Chicago Title
*You are purchasing our purchase and sale agreement in most cases. If you are unfamiliar with this type of transaction, please call our office first.
*Number Crunchers, LLC does not claim to be the owner of the properties we market for sale. If we are not the owners then we simply have an equitable interest in the property. Number Crunchers, LLC. is a real estate investment firm. One or more persons affiliated with or employed by Number Crunchers, LLC is a licensed real estate agent or broker in the state of Virginia or other states.
*Comps and values are for Informational purposes only. Please do your own research and due diligence.
Agents are welcome - you must add your commission on top of deal to your client, you are to be compensated by the buyer on the deal. Seller does not pay commissions. So in order to be competitive, if we're asking $100k, your offer would be $105k with you as an agent making $5,000 or whatever your fee is
Wholesalers are welcome - you are welcome to market after signing a JV agreement with Number Crunchers LLC. Please contact us with your business entity information and we will execute such agreement. Please note: our contracts are NOT ASSIGNABLE so you must enter a JV with us and we will assign to your buyer. You must add your fee on top of this price. Seller does not pay additional wholesale fees. So in order to be competitive, if we're asking $100k, your offer would be $105k with your as a wholesaler making $5,000 or whatever your fee is.
We take interference in our contract seriously. Receiving or viewing this website, email, or text message constitutes knowledge of the existence of a contract. Should you, or an associate pursue a property we have under contract we will prosecute to the fullest extent of the law up to and including bringing in your associates as accomplices in torturous interference of a contract. Please treat each other with respect.
Number Crunchers LLC is a real estate investing firm owned and operated by Sharon-Lee A Smith. Number Crunchers LLC focuses on mentorship and disposition services for real estate investors and wholesalers.
Since 1996, Sharon-Lee A Smith has been in construction cost estimating and project management. Working for restaurant design-build companies, custom luxury home builders, and specialty contractors alike, Sharon-Lee is well versed in large-scale construction projects and speaks from experience.
In 2007, Sharon-Lee began flipping houses along with other partners and shortly began to build her portfolio.
In 2022, Sharon-Lee ventured into wholesale transactions and began mentoring new investors teaching from her experience and JVing with them to dispo (sell) their contracts. Sharon-Lee prides herself in bridging the gap between seasoned developers, flippers, and contractors and the newbie wholesalers and investors just getting started in real estate with ethical professionalism.
Page updated
Google Sites
Report abuse