Hotel Indigo Atlanta - Vinings

Institutional Quality Asset – the 160-room Hotel Indigo Vinings boasts institutional quality boutique finishes throughout the entirety of the property. The property underwent a comprehensive $9.8 million ($61,250 per room) brand conversion and renovation to the Indigo brand in 2016. Ownership has invested an additional $850,000 into the property in the subsequent years that has significantly boasted performance against the competitive set of hotels.

Strong Area Corporate Demand – The Galleria/Vinings submarket is one of the largest office submarkets in the Atlanta metro area, boasting in excess of 19 million square feet of space. While the on-going pandemic has significantly hampered corporate travel, the hospitality submarket has performed considerably well despite diminished corporate travel and is poised for a very strong rebound once corporate demand returns. The property sits 0.5 miles from The Home Depot’s corporate campus, and the area is home to other corporate headquarters including the Weather Channel, RaceTrac Petroleum, HD Supply, thyssenkrup, Comcast (South Regional HQ) and major operations for Lockheed Martin, Lincoln Financial group and others. According to CoStar Research, there are over 4.2 million square feet of Class A office within a one-mile radius of the property, and over 16 million square feet of Class A office within a three-mile radius of the property.

Diverse Mix of Demand – in addition to strong historical corporate demand, the Galleria/Vinings area also benefits greatly from non-corporate leisure and government/military business in the immediate area. The Battery Atlanta, home to the Atlanta Braves, is located 2.8 miles from the property. The Braves host 81 home games a year from April through September, and the team’s competitive roster has allowed them to reach the playoffs each of the last three seasons, further elongating the season. In the off-season, the mixed-use development boasts well over two dozen exciting dining and entertainment options and hosts events and concerts year-round that draw in visitors from all over the surrounding region. Additionally, five miles northwest of the property is Dobbins Air Reserve Base. The base is housed on 2,800 acres and is one of only nine standalone Reserve bases in the Air Force Reserve. Adjacent to Dobbins Air Reserve Base is Lockheed Martin. This location is home to the east coast operation of Lockheed Martin Aeronautics and employs approximately 5,000 people.

Attractive Basis – the property is being offered at a sizeable discount to replacement cost. The combination of sky-rocketing costs of materials and a limited labor pool has significantly increased cost of construction in commercial real estate over the last 18 months. General scarcity of developable sites inside the 285 Perimeter of Atlanta has pushed construction costs in the metro area up even further, as developers are left to bid on a very limited number of viable sites. The cost to replicate this property in this location today would be well north of $200,000 per room.

Assumable Financing – the property has attractive non-recourse Life Company debt that could be assumed by a qualified buyer. The details of the current debt are contemplated in the offering materials. The fee simple ownership rights are being offered unencumbered by current property management.