~13% Cap Rate on Actuals

Carrizo Springs, TX (Dimmit County)

Main Office and Drive up to EFS Housing Complex
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Asking Price: $5,987,500

Cash Flow: $772,593

Gross Revenue: $1,307,364

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Real Estate: N/A

Established: 2007

~13% Cap Rate on Actuals

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Business Description

Eagle Ford Shale Housing Complex being offered for Sale at a 13% Cap

Eagle Ford Shale Housing Complex is strategically located in Carrizo Springs, Texas. Carrizo Springs is located in the Eagle Ford Shale, which is THE LARGEST Oil and Gas Reserve in the United States. The area offers a high demand for overnight lodging and ‘EFS’ has a very positive cash flow stream due to the demand. ‘EFS’ Housing Complex is also in high demand because the area is growing rapidly and uncorrelated industries/businesses are vying for the limited high service housing units in Carrizo Springs. One of the uncorrelated industries is the U.S. Government. The Government has a Housing Complex which is only a few miles from “EFS” and houses the service contractors for separated migrant children. “EFS” offers kitchenette housing
which no othe complexes offer and currently has tenants from some of the largest Oil and Gas Companies in the US Fortune 500; as well as contractors providing education, healthcare, and resources for the separated children.
Eagle Ford Shale Housing offers a true 12.90% Cap Rate day one of the investment with tremendous upside by lowering some of the high expenses on the current operation. The actual Cash on Cash Return at ~20% down is an astonishing 40.58% at the asking price of $5,987,500.00 and an overall return on investment of 47.00%. The next investor should be able to easily recoup all of the down payment in less than 3 years by minimally increasing the
nightly room rate and lowering the very high expenses.
With uncorrelated businesses vying for “kitchenettes” and being strategically located close to the “Housing Complex” for separated children combined with being in the heart of the Eagle Ford Shale, the next investor should benefit from the high demand for housing and an experienced operator should be able to quickly turn this offering into an efficient operation and capitalize on improving a very strong cash flow for the coming years and enjoy an above market return on the initial investment.

Attached Documents


Detailed Information

Location:
Carrizo Springs, TX
Real Estate:
Owned
Included in asking price
Building SF:
N/A
Employees:
4
Facilities:
Please sign CA/NDA for additional Marketing and Subject Property Information. CA/NDA is attached.
Growth & Expansion:
** 12.90% Cap Rate Return on Seller's Provided P&L ** Strategically located property in the Eagle Ford Shale AND U.S. Government Housing Center ** 40.58% Cash on Cash Return WITHOUT Seller Financing ** 47% Total Overall Return on Investment Day 1 ** Turn key Investment opportunity with Management and Employees intact ** Ability to recapture Buyer's Down Payment in < 3 years!! ** New Oil and Gas Pipeline planned over the next 5+ years ** Owner/Operator may be able to lower expenses to realize higher Returns
Reason for Selling:
The Owner is absentee and motivated to sell. Will quickly respond to offers
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Business Location


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Business Listed By:
Roger L. Hendricks, 1st VP of Investment Sales

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