Marcus & Millichap has successfully sold the Cobblestone Hotel & Suites Killdeer, a property located at 158 Rodeo Drive in Killdeer, North Dakota. The hotel and eight-unit apartment complex were purchased for $4 million. Marcus & Millichap Capital Corporation (MMCC), a subsidiary of Marcus & Millichap, arranged $3.4 million in acquisition financing for the buyer.
According to Joseph Ferguson, senior associate at Marcus & Millichap, the Cobblestone Hotel is strategically positioned to benefit from the growing demand from both oil and gas workers as well as business travelers in the region. The team was able to find a buyer from Washington state and secure financing through MMCC to ensure a smooth transaction.
The exclusive listing for this property was held by investment specialists Jon Ruzicka, Jake Erickson,Jared Plamann,and Reed Gizinski of Marcus&Millichaps Minneapolis office on behalf of seller Zipper Enterprises Inc.RuzickaandFergusonwere ableto procurethebuyerGBAAZ LLC.
The MMCC team led by managing director Pete Fehlmanandassociate directorJake Marshall worked with Jay Takharof GBAAZ LLCto secure 85% loan-to-cost SBA7(a)financingat an attractive rate.The SBA7(a) program continues tobepopularforhotelownerslookingtominimizeequitycontributionaccordingtoFehlman.
Built in 2012,theCobblestoneHotel&Suites has recently undergone significant upgrades,making it an appealing optionfor modern accommodations.Killdeerasan oil townwith proximitytokeydrilling siteshas consistentdemandfromindustrialactivitiesaswellasseasonaltourism.Thiscreatesconsistentdemandfortheproperty’shospitalityandresidentiallodgingcomponentwhichconsistsoftwofour-unitbuildingsfeaturing1700-square-foot apartmentswithtwo bedroomsonebathroomandaccess to eightgaragestalls.
Overall, the sale and financing of this property demonstrate the strong demand for hotels in North Dakota, particularly in areas with a thriving oil and gas industry. The success of this transaction is also a testament to Marcus & Millichap’s expertise in sourcing buyers and securing competitive financing options for their clients.
