Lender Owned | $1 | Former Americas Best Value Inn
Convenient Location – set along I-40 and within 1.0mi of the I-40/I-55 Interchange
Marketing description
STARTING BID MEETS RESERVE
For registration requirements and regulations, please review HERE or Audrey Hanna | 518-625-8581| [email protected].
Property tours are available by appointment only. Please contact the listing broker to schedule a tour.
Matthews REIS Auction Services is pleased to offer the opportunity to acquire the former America’s Best Value Inn, situated directly adjacent to I-40, in West Memphis, AR. The property sits less than 5.0mi from both the I-40 & I-55 bridges, across the Mississippi River, running into the heart of Memphis, TN. Additionally, the property is located within 2.0mi of a variety of retail, grocery, and dining options, such as Chic-fil-A, Kroger, & Starbuck’s. The immediate area’s largest employers, Schneider National Carriers, Baptist Memorial Hospital, & the Southland Casino are also within minutes of the subject property.
The former extended stay site is prime for immediate redevelopment and rehabilitation, made possible its current vacant status and low-basis pricing. The next owner stands to benefit from well-above-market returns and consistent rental traffic, given the highly convenient location. With 81-units, the asset also offers the opportunity to acquire immediate scale in the market, providing management and expense efficiencies.
The West Memphis market has a limited supply of multifamily housing and nearly no efficiency-style units available, allowing for future ownership to capture the vast majority of demand for studio rentals, in the area.
While smaller 1-bedroom rents in the area average +/-$600, taking a highly conservative approach to market rents at just $525, still results in stabilized returns in the 20%’s+ range, tax adjusted.
*The subject property is currently closed and has suffered significant fire damage, as well as damage due to vandalism and vagrancy. *
- Non-Contingent
- Earnest Money Deposit: Greater of $20,000 or 10% of the Purchase Price
- Marketing Fee: 5% of the Winning Bid Amount, $20,000 minimum
- $10,000 Participation Deposit Required
2501 S Service Rd, West Memphis, AR 72301
Investment highlights
AR Auctioneer: Stephen Dawson, INRES03000.
- Original Construction: 1985 – with nearly $500k in improvements made since 2022.
- 81 Total Units – all efficiency style floor plans.
- Convenient Location – set along I-40 and within 1.0mi of the I-40/I-55 Interchange.
- Pool onsite and large parking area with space for additional amenities
- Compelling Basis Opportunity – providing the next owner with flexibility to make necessary improvements.
- Surrounding efficiency and small 1-bedroom average rents: $600
- Stabilized cap rate projection exceeds 25% returns
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