Residence Inn Palmdale Lancaster
Institutionally Owned and Managed
Marketing description
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Property tours are available by appointment only. Please contact the listing broker to schedule a tour.
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee simple interest in the 90-room Residence Inn Lancaster Palmdale, situated at 514 W Rancho Vista Blvd, Palmdale, CA 93551 (“Hotel” or “Property”).
The purchase of the Residence Inn represents the opportunity to acquire a premium-branded, extended-stay Hotel that exhibits stable cash flows in the sixth largest, and one of the fastest growing cities in Los Angeles County.
Palmdale's thriving economy is heavily driven by Aerospace industries. Companies such as Northrop Grumman, Boeing, and Lockheed Martin employ over 30,000 people in the area. The Residence Inn is also proximate to the 420-bed Antelope Valley Medical Center and the Palmdale Regional Medical Center, a 190-bed acute care hospital with more than 450 licensed physicians.
Antelope Valley, which includes Palmdale and Lancaster, has become a bedroom community to the Greater Los Angeles area. Major housing developments and population growth have exploded over the last 40 years. The Lancaster—Palmdale MSA is home to over 355,000 people. With the size of the aerospace industry and military bases located there, Antelope Valley has been nicknamed the Aerospace Valley.
- Non-Contingent
- Earnest Money Deposit: Greater of $20,000 or 10% of the Purchase Price
- Marketing Fee: 3% of the Winning Bid Amount, $20,000 minimum
- $10,000 Participation Deposit Required
- Subject To Seller Approval
514 W Rancho Vista Blvd, Palmdale, CA 93551
Investment highlights
- Easy Access from Highway 14: The Hotel is situated in a highly visible location at the intersection of Highway 14, a well-traveled highway that connects Palmdale to other cities including Los Angeles, and Elizabeth Lake Road
- Exterior CapEx Mitigation: The recently completed exterior reimaging helps to mitigate the CapEx burden for a new owner, satisfying immediate brand-mandated exterior requirements and maximizing near-term cash-flow potential
- Benefits from Antelope Valley’s Highly Stable Demand Generators: The Property benefits from its proximity to recession-resistant government and healthcare employers. Palmdale Regional Medical Center, the NASA Armstrong Center, and Airforce Plant 42 are all major employers in the area
- Opportunity for Portfolio Synergies: An investor has the opportunity to benefit from operational synergies by acquiring the neighboring Courtyard Palmdale, located at 530 W Rancho Vista Blvd. A joint acquisition creates potential for operational efficiencies across staffing, management, sales efforts, purchasing, and maintenance. Combined ownership may also strengthen market presence and provide opportunities to optimize revenue performance across both assets
- Residence Inn Brand Affiliation: Residence Inn is one of the most recognized extended-stay brands in the hospitality industry, producing more stable occupancy and cash flow performance than traditional transient lodging. Furthermore, the affiliation with the 270+ million members of Marriott’s Bonvoy rewards program provides additional benefits in expanding demand channels for bookings
- Institutionally Owned and Managed: The Hotel is both institutionally owned and managed. However, the Property is being offered unencumbered by a management agreement, providing a new owner full operational control
- Fee Simple Interest: The Property is offered as fee simple, which will be extremely attractive to the investment community
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