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OFFERING MEMORANDUM Presented by: RED ROOF INN| ST. LOUIS, MISSOURI
Transcript
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OFFERINGMEMORANDUM

Presented by:

RED ROOF INN| ST. LOUIS, MISSOURI

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The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

CONFIDENTIALITY AND DISCLAIMER

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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excl

usiv

ely

liste

d by EXCLUSIVELY LISTED BY:

OFFICES THROUGHOUT THE U.S AND CANADAwww.marcusmillichap.com

JERRY SWONNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5219Mobile: (908) [email protected] License: NY 10401248594,NJ 0999581

TIM MCCAFFREYNational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5197Mobile: (516) [email protected] License: NY 10401278221

DANIEL ZAGORIANational Hospitality GroupMANHATTAN OFFICEDirect: (212) 430-5211Mobile: (404) [email protected] License: NY 10401272902

BRIAN WHELANNational Hospitality GroupMANHATTAN OFFICEDirect: (646) 805-1441Mobile: (201) [email protected] License: NY 10401277435,NJ 1644475

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red roof inn st. louis westport

TABLE OF CONTENTS

EXECUTIVE SUMMARYExecutive Summary 2 Investment Overview 3Summary of Terms 4

PROPERTY DESCRIPTIONFeatures and Amenities 6Local / Regional Map 7Area Attractions 8-9

FINANCIAL OVERVIEW Market Trend 12 RevPAR Comparison 13

Profit and Loss Summary 14Five-Year Cash Flow Pro Forma 15Five-Year IRR 16

COMPETITIVE PROPERTY SET

Competitve Properties 18

MARKET OVERVIEWDemographic Summary 20-21Market Overview 22-25

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SummaryE X E C U T I V E S U M M A R Y

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EXECUTIVE SUMMARY

2

red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

11837 LACKLAND ROAD, ST. LOUIS, MO 63146W

ANNUALIZED OPERATING DATA

INCOME ACTUAL 2016 % OF GR PRO FORMA % OF GR

Room Revenue $1,980,613 99.9% $2,040,428 99.9%

Other Revenue $286 0.1% $295 0.1%

Gross Revenue $1,980,899 100.0% $2,040,723 100.0%

Total Expenses $1,372,559 69.3% $1,355,780 66.4%

Net Operating Income $608,340 30.7% $684,943 33.6%

OFFERING SUMMARY

Proposed Price $6,000,000

Property Improvement Plan ($1,500/ Room Estimate) $237,000

Total Investment $6,237,000

Down Payment $1,500,000/ 25%

Total Number of Rooms 158

Occupancy 56.1%

ADR $61.18

RevPAR $34.34

Year Built | Renovated 1987 | 2007

Number of Stories 3

Type of Ownership Fee Simple

VITAL DATA

Cap Rate 9.8%

CAP Rate - Pro Forma 11.0%

Room Revenue Multiplier 3.0

Room Revenue Multiplier- Pro Forma 3.1

Price/Room (Total Investment) $39,475

5 - Year IRR 36.9%

PHOTO

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EXECUTIVE SUMMARY red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Marcus & Millichap has been chosen to exclusively market for sale the Red Roof Inn St Louis Westport, a three-story 158-room hotel located off Interstate 270 in St Louis, Missouri The hotel is located approximately 10 miles from Lambert - St Louis International Airport The hotel features numerous complementary amenities including WiFi, domestic and long distance calls, coffee, and tea Guest rooms feature a boutique design with spa-inspired bathrooms, work desk, coffee maker, microwave oven, and a flat-screen television FranchiseRed Roof has strong brand recognition with over 450 inns in 40 states and has grown internationally with properties open in Brazil, Osaka, Japan, and others to follow in Canada and Thailand Red Roof also employs over 6,000 people and serves millions of guests each year Additionally, according to Smith Travel Research, Red Roof consistently has one of the highest revenue per available room (RevPAR) of any brand in the economy market; outperforming in occupancy and average daily rate (ADR) among economy competitors

Investment Overview

Investment SummaryThe Red Roof Inn St Louis Westport represents the opportunity to acquire a well-maintained hotel located in a stable market Our Pro Forma analysis assumes an investor will increase operating efficiencies through cost management and modest revenue growth

Investment Highlights�� Easily Accessible from Interstate 270 and Located Approximately 10 Miles

from Lambert - St Louis International Airport

�� Proximity to Area Attractions - Busch Stadium, St Louis Zoo, Maryland Heights Aquatic Center, Verizon Wireless Amphitheater, Edward Jones Dome, St Louis Arch, and Scottrade Center

�� Corporate and Leisure Demand - Approximately 14 Miles from Downtown

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EXECUTIVE SUMMARY

4

red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Interest Offered

Fee simple interest in the Red Roof Inn St Louis Westport, a 158-room hotel located at 11837 Lackland Road, St Louis, Missouri 63146

Terms of the Sale

The Red Roof Inn St Louis Westport is offered at $6,000,000 based on a capitalization rate of 9 8 percent Historic operating documentation and third party reports may be found in the online document data portal

Property Tours

Prospective purchasers are encouraged to visit the subject property prior to submitting offers However, all property tours must be arranged with the Marcus & Millichap listing agents Please do not contact the tenants, on-site management or staff without prior approval

Summary of Terms

Proposed Financing

FINANCING

Loan Amount $4,500,000

Loan Type Proposed New

Interest Rate 5.00%

Amortization 25 years

Loan information is time sensitive and subject to change Contact your local Marcus & Millichap Capital Corporation representative

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DescriptionP R O P E R T Y D E S C R I P T I O N

Old Courthouse

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PROPERTY DESCRIPTION red roof inn st. louis westport

6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Features and Amenities

COMMON AREA FEATURES

ROOM AMENITIES

RED ROOF INN ST. LOUIS WESTPORT11837 Lackland RoadSt. Louis, Missouri 63146

� Complimentary WiFi

� Snack Center

� Elevator

� Laundry Facility

� Complimentary Coffee

� Meeting Facilities

� Complimentary Parking

� Flat Screen Television

� Premium Cable Channels

� Work Desk

� Microwave

� Blackout Curtains

� Mini-Fridge

� Complimentary WiFi

� Iron / Ironing Board

� Coffee Maker

� Daily Housekeeping

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PROPERTY DESCRIPTION

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red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Local Map Regional Map

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PROPERTY DESCRIPTION red roof inn st. louis westport

8 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Area AttractionsAREA ATTRACTIONS DISTANCE

Lindenwood University 0.3 Mile

Westport Plaza 0.7 Mile

Creve Coeur Park 3.3 Miles

DePaul Health 3.5 Miles

St. John's 3.5 Miles

Sportport 4.0 Miles

Missouri Baptist 4.5 Miles

Maryville University 5.5 Miles

Verizon Wireless Amphitheater 5.7 Miles

St. Louis University 6.0 Miles

University of Phoenix 6.3 Miles

Magic House 8.5 Miles

St. Louis Art Museum / Zoo 8.5 Miles

St. Louis Outlet Mall 8.9 Miles

The Muny Theater 9.3 Miles

Fontbonne University 9.8 Miles

St. Louis Science Center 10.3 Miles

West County Center 10.4 Miles

Cathedral Basilica of St. Louis 10.5 Miles

Forest Park / Missouri Botanical Garden 11.0 Miles

Grant's Farm 11.5 Miles

Harris-Stowe University 12.3 Miles

Fox Theater 12.7 Miles

City Museum 13.5 Miles

Gateway Arch 13.5 Miles

Busch Stadium 14.0 Miles

Anheuser Busch Brewery Tour 14.0 Miles

Old Courthouse 14.5 Miles

St. Louis Executive Conference and Edward Jones Dome 14.8 Miles

MAJOR EMPLOYERS IN MARKET

COMPANY LOCAL EMPLOYEES

Mercy Hospital St. Louis 4,552

Monsanto 3,000

Parkway Community Education 2,300

Hollywood Casino St. Louis 2,200

S. Luke's Hospital 1,823

Missouri Baptist Medical Center 1,605

Alberici Corporation 1,500

American Residential Services Inc 1,328

Interstate Cleaning Corporation 1,300

SSM Health Care Corporation 1,225

De Paul Hospital 1,200

Busch Stadium

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PROPERTY DESCRIPTION

9

red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Area Attractions

St. Louis University

Magic House Gateway Arch

The Muny Theater

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AnalysisF I N A N C I A L A N A LY S I S

St. Louis Art Museum

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red roof inn st. louis westport

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FINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Market Trend

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13

red roof inn st. louis westportFINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

RevPAR Comparison

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red roof inn st. louis westport

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FINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Profit and Loss Summary

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red roof inn st. louis westportFINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

5-Year Cash Flow Pro Forma

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red roof inn st. louis westport

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FINANCIAL ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

5-Year IRR

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CompetitiveC O M P E T I T I V E P R O P E R T Y S E T

City Museum

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PR

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Wred roof inn st. louis westport

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COMPETITIVE PROPERTY SET

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Competitive Properties

2

Hotel City, State Zip Built Rooms

* Red Roof St. Louis Westport St. Louis, MO 63146 1986 158

1 Comfort Inn St. Louis Westport St. Louis, MO 63146 1973 170

2Motel 6 Maryland Heights

Maryland Heights, MO 63143 1987 140

3 Extended Stay America St. Louis Westport Craig Road St. Louis, MO 63146 1994 72

4Extended Stay America St. Louis Westport East Lackland Road St. Louis, MO 63146 1996 150

5 La Quinta Inns & Suites St. Louis Westport St. Louis, MO 63146 1997 131

6 Extended Stay America St. Louis Westport Central St. Louis, MO 63146 1999 98

1

3

4

5

6

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OverviewM A R K E T O V E R V I E W

St.Louis Zoo

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MARKET OVERVIEW red roof inn st. louis westport

20 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Demographic Summary

POPULATION 1 MILE 3 MILES 5 MILES

2000 Population 4,612 78,395 161,934

2010 Population 4,580 78,532 157,994

2014 Population 4,592 78,766 158,616

2019 Population 4,766 79,306 158,443

INCOME

$0-$14,999 7 3% 9 1% 10 7%

$15,000-$24,999 8 0% 9 4% 10 3%

$25,000-$34,999 7 5% 9 6% 10 3%

$35,000-$49,000 13 9% 14 7% 15 0%

$50,000-$74,000 23 4% 19 6% 17 6%

$75,000-$99,000 18 1% 13 8% 12 1%

$100,000-$124,999 9 7% 9 2% 8 2%

$125,000-$149,000 4 6% 5 2% 4 6%

$150,000-$199,000 3 8% 4 7% 4 5%

$200,000-$249,000 1 7% 1 8% 2 5%

$250,000 + 2 0% 2 8% 4 1%

2014 Median Household Income $62,809 $57,909 $54,083

2014 Per Capita Income $38,921 $36,126 $36,679$76,072 $62,627 $55,957

2014 Average Household Income $78,863 $80,701 $84,738

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2000 Households 2,312 34,934 69,496

2010 Households 2,259 34,924 67,922

2014 Households 2,266 35,075 68,305

2019 Households 2,352 35,408 68,472

2014 Average Household Size 2 10 2 22 2 29

2000 Owner Occupied Housing Units 64 16% 62 18% 64 77%

2000 Renter Occupied Housing Units 32 60% 32 84% 29 89%

2000 Vacant 3 24% 4 98% 5 34%

2014 Owner Occupied Housing Units 70 81% 63 70% 65 48%

2014 Renter Occupied Housing Units 29 19% 36 30% 34 52%

2014 Vacant 6 40% 7 73% 7 78%

2019 Owner Occupied Housing Units 70 66% 63 82% 65 45%

2019 Renter Occupied Housing Units 29 34% 36 18% 34 55%

2019 Vacant 6 99% 8 10% 8 17%

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MARKET OVERVIEW

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red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

PopulationIn 2014, the population in your selected geography is 158,616 The population has changed by -2 04% since 2000 It is estimated that the population in your area will be 158,443 five years from now, which represents a change of 0 10% from the current year The current population is 47 79% male and 52 20% female The median age of the population in your area is 40 5, compare this to the Entire US average which is 37 3 The population density in your area is 2,017 16 people per square mile

Households

There are currently 68,304 households in your selected geography The number of house-holds has changed by -1 71% since 2000 It is estimated that the number of households in your area will be 68,472 five years from now, which represents a change of 0 24% from the current year The average household size in your area is 2 29 persons

Income

In 2014, the median household income for your selected geography is $54,083, compare this to the Entire US average which is currently $51,972 The median household income for your area has changed by 10 13% since 2000 It is estimated that the median household income in your area will be $61,751 five years from now, which represents a change of 14 17% from the current year

The current year per capita income in your area is $36,679, compare this to the Entire US average, which is $28,599 The current year average household income in your area is $84,737, compare this to the Entire US average which is $74,533

Demographic Summary

Race & EthnicityThe current year racial makeup of your selected area is as follows: 71 61% White, 16 15% Black, 0 05% Native American and 6 89% Asian/Pacific Islander Compare these to Entire US averages which are: 71 60% White, 12 70% Black, 0 18% Native American and 5 02% Asian/Pacific Islander

People of Hispanic origin are counted independently of race People of Hispanic origin make up 5 38% of the current year population in your selected area Compare this to the Entire US average of 17 13%

Housing

In 2000, there were 47,551 owner occupied housing units in your area and there were 21,943 renter occupied housing units in your area The median rent at the time was $541

Employment

In 2014, there are 156,046 employees in your selected area, this is also known as the daytime population The 2000 Census revealed that 71 93% of employees are employed in white-collar occupations in this geography, and 27 90% are employed in blue-collar occupations In 2014, unemployment in this area is 5 03% In 2000, the average time traveled to work was 22 1 minutes

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MARKET OVERVIEW red roof inn st. louis westport

22 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Market Highlights

Central location

�� The central U.S. location allows for fast access domestically and internationally.

Excellent transportation system

�� The St. Louis metro has freight, rail, and sea transportation.

Affordable cost of living

�� Home prices are well below other large markets in Midwestern states.

Geography

St. Louis is located at the confluence of the Mississippi and Missouri rivers, which have cut large valleys with wide flood plains through the area, leaving a fertile and gently rolling prairie. The limestone and dolomite underlying the region are used in construction. The metro is near the geographic center of the United States, within 500 miles from one-third of the U.S. population.

Metro

The St. Louis metro encompasses the city of St. Louis; the Missouri counties of St. Charles, Jefferson, Franklin, St. Louis, Lincoln, War-ren and Washington; and the Illinois counties of Madison, St. Clair, Macoupin, Clinton, Monroe, Jersey, Bond and Calhoun. The metro has more than 2.8 million residents, and St. Louis is the only city in the metro with a population of more than 100,000 people.

Infrastructure

St. Louis has access to four modes of transportation — air, rail, road, and water. This provides the metro with some of the lowest shipping costs in the country. St. Louis' location at the center of the nation's interstate highway systems offers an easy-to-navigate, transportation infrastructure.

Lambert-St. Louis International Airport is the region's primary pas-senger airport, while much of the cargo is handled at MidAmerica St. Louis Airport. Smaller airports, including St. Louis Downtown, cater to business and private air traffic.

The Port of Metropolitan St. Louis handles an average of $6 billion in cargo each year. St. Louis has one of the nation's largest rail centers, with service provided by BNSF, Norfolk Southern and Union Pacific. Mass transportation needs are met by Metro Transit, a bistate agen-cy, that operates MetroBus and MetroLink, the light-rail system.

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MARKET OVERVIEW

23

red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Largest Cities in Metro by Population

�� Lambert-St. Louis International Airport

�� MidAmerica St. Louis Airport

�� St. Louis Downtown Airport

Airports

* Forecast Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Experiancial and residential uses.

Economy

St. Louis 317,600

O'Fallon 84,700

St. Charles 67,600

St. Peters 55,800

Florissant 52,300

Chesterfield 47,700

Major Roadways

�� Interstates 44, 55, 64, 70, 170, 270,

255, and 370

Rail�� Freight - BNSF, Norfolk Southern,

Union Pacific

�� Passenger - Amtrak

�� Light Rail - MetroLink

Port

�� Port of Metropolitan St. Louis

The St. Louis Metro is:

�� 250 miles from Kansas City

�� 300 miles from Chicago

�� 630 miles from Dallas

�� 850 miles from Denver

St. Louis is highly ranked for its logistics infrastructure, bolstered by its central geographic location. The city is situated at the confluence of two of the largest rivers in North America, as well as the smaller Illinios River. Easy access to these major waterways has allowed St. Louis to become one of the largest inland ports in the nation, with access to many international des-tinations. In addition, the city is also well connected via its extensive highway and rail transportation corridors.

The region is emerging as a large financial services center behind New York and Boston. Jones Financial is one major company in the sector with local headquarters. Reinsurance Group-America is also a major employer; its 405,000-square-foot headquartersis in Chesterfield.

Government entities actively pursue new business development and provide resources for startups. The region has numerous incubators where fledgling firms can find guidance and inexpensive office and lab space, including the Center for Emerging Technologies in the Cortex District. Financial resources are also available from several new venture funds covering sciences, IT, plant and life sciences and other growing sectors.

The St. Louis gross metropolitan product (GMP) is expected to grow by 2.6 percent this year, below the 3.1 percent rate of national GDP. Future economic development will be driven primarily by the region's lower costs, highly skilled workforce and supportive environment for business.

* Forecast Sources: Marcus & Millichap Research Ser-vices, Bureau of Economic Analysis, Moody's Analytics, U.S. Census Bureau, Fortune

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MARKET OVERVIEW red roof inn st. louis westport

24 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Labor

The St. Louis employment base, at more than 1.3 million jobs, will increase at an annual rate of 1.3 percent over the next five years with growth posted across major sectors. Given its central location and proximity to a number of major U.S. metros, St. Louis relies heavily on transportation services. The trade, transportation and utilities category employs the largest share of workers in the metro at 19 percent, or almost 253,000 persons. Education and health services accounts for 18 percent of total employment, or 235,000 positions. Companies such as BJC Healthcare and educational institutions including Washington University in St. Louis and St. Louia University contrib-ute to jobs in this sector.

The local economy continues to diversify, due largely to the efforts of local and state governments to attract technology companies. The manufacturing sector, which comprised 13 percent of the labor force earlier in the decade, now accounts for approximately 9 percent. Jobs in this sector area likely to rise as Boeing increases its presence in the metro by expanding its compos-ites facility in St. Louis.

Through the next five years, the largest job gains will be in the other services and the leisure and hospitality sectors, which will expand 3.4 and 2.5 per-cent each year, respectively. Annual growth of nearly 2.4 percent is expected in professional and business services. This segment provided more than 207,700 jobs and added positions should help bolster office demand.

*Forecast Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

Employers

Forecast Sources: Marcus & Millichap Research Services, Moody’s Analytics, BLS, Experian

St. Louis is headquarters to nine Fortune 500 companies, including Express Scripts, Monsato, Amren and Peabody Energy. These companies represent some of the main industries in the area, which include aviation, biotechnology, telecom-munications, chemicals, electrical utilities, food and beverage manufacturing, refin-ing, research and transportation.

State efforts to stimulate economic growth and decease unemployment, along with local initiatives, are producing economic results. Edward Jones, which em-ploys more than 5,000 people locally, and Centene Corp., are two companies that have expanded their headquarters to accomodate hundreds of new jobs.

St. Louis Enterprise Centers was established to promote an entrepreneurial environment to provide new and growing businesses with the support needed to thrive. The centers offer entrepreneurs affordable office and warehouse space, ac-cess to mentors, shared support services, seminars and networking opportunities, The area is also establishing an active venture capital environment. St. Louis is home to more than a dozen venture capital funds with more than $1 billion under management. These effors are nuturing startup companies in technology and life sciences.

Major Employers

�� BJC Healthcare �� SSM Healthcare

�� The Boeing Company �� AT&T Communications Inc

�� Scott Air Force Base �� Schnuck Markets

�� Washington University in St Louis �� St Louis University

�� Wal-Mart

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MARKET OVERVIEW

25

red roof inn st. louis westport

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc. © 2016 Marcus & Millichap ACT ID Y0330388

Demographics

The metro population continues to increase, but at a slower pace than that of the nation. Since 1990, annual population gains have averged 0.4 percent, with approximately 232,000 new residents added in this period. Average population growth is expected to remain steady through the next five years.

The population of St. Louis is slightly older than the nation, with a median age at 38.7. As such, the largest age segment is the 45- to 64-year-old cohort, accounting for 28 percent of the population. This group represents individuals within their prime earning years. It also contains many members of the baby boomers generation, which will move into retirement over the next five years.

The St. Louis population is well-educated. Approximately 30.8 percent of residents age 25 or older have at least a bachelor's degree, compared with 28.8 percent nationally. The expanding local economy show draw and retain educated workers.

With a median price around $153,200 home prices in St. Louis are some of the lowest among large Midwestern cities and well below the U.S median. This allows more than 70 percent of households to own their homes. During the next five years, income growth is expected to outpace the rise in home prices, making the region more affordable.

* Forecast Sources: Marcus & Millichap Research Services, Moody’s Analytics, U.S. Census Bureau, AGS, Experian

Quality of Life* Forecast Sources: Marcus & Millichap Research Services, Moody’s Analytics, U.S. Census Bureau, AGS, Experian

The St. Louis metro offers an attractive quality of life to its residents, combining big-city amenities with Midwestern hospitality. The metro boasts numerous public and private golf course, more than 100 parks, 200 miles of trails and the Gateway Arch. Many of St. Louis' premier attractions, including the St. Louis Zoo, the St. Louis Art Museum, the Missouri History Museum and the Municipal Opera, are located in For-est Park. The park also features two gold course and dozens of athletic fields.

The region has its share of amusement parks. Residents and visitors alike can enjoy a day with family at Raging Rivers Water Park in Grafton, Illinois, or Six Flags St. Louis in Eureka, Missouri.

For sports fans, the area houses the St. Louis Cardinals, St. Louis Rams and the St. Louis Blues. Within a few hours from the city is Lake of the Ozarks, Missouri's largest body of water, offering numerous destinations for hunting, fishing, camping, hiking, and spelunking.

There are more than 40 colleges, universities and technical schools in the metro, enrolling around 200,000 students a year. Washington University St. Louis is highly ranked among U.S. universities.

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