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37555 Hills Tech Dr, Farmington Hills, MI 1650 N Opdyke Rd, Auburn Hills, MI
MainStay Suites Michigan Portfolio
Asset ClassHotel & Hospitality
overview of deal

Overview

HREC Investment Advisors (“HREC IA”) is pleased to off er, to qualifi ed investors, the opportunity to acquire the recently renovated MainStay Suites Detroit Farmington Hills, totaling 123 keys, ideally located and highly visible along I-696 in Farmington Hills, MI.

 

The Property is situated near the intersection of Interstate 696 (from which the Hotel has excellent visibility), Interstate 96, and Michigan Route 5, allowing for easy access to the rest of Oakland County and downtown Detroit. The Detroit area is a significant hub for business and global trade, particularly known for hosting the major automobile companies General Motors, Ford, and Chrysler. The Detroit metropolitan area, spanning six counties, has a population of approximately 4.4 million people.

 

Economically robust, Farmington Hills hosts a wide variety of major corporations, notably in the automotive sector. Leaders such as Bosch, Nissan, and Mercedes-Benz Financial Services have made significant investments, contributing to the city’s reputation as an epicenter for the automotive industry. Furthermore, Comerica Bank’s recent consolidation of its offi ces into the Great Lakes Campus underscores Farmington Hills’ appeal as a strategic business locale. Beyond commerce, the city embraces recreation and culture, with a wealth ofparks, trails, and entertainment options. Anchored by venues like the Farmington Civic Theater, the community off ers a dynamic urban lifestyle, cementing its status as a premier destination within the Great Lakes region.

 

The Hotel provides select-service amenities such as kitchenettes, suite rooms with multiple bedrooms, fitness center, business center, and high-speed Wi-Fi access, making it an ideal option for travelers seeking comfort and convenience for longer term stays in the Detroit suburbs. The affiliation with the Choice Privileges rewards system provides additional benefits in expanding demand channels for bookings. This loyalty program has more than 50 million members and continues to grow.

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Investment Highlights

  • Partially Renovated Offering: The Hotel was partially renovated (11 rooms) following a fi re that damaged some of the rooms. The resulting hotel is a higher quality build and off ering than comparable hotels in the market. market. The fire-alarm system, including a new panel, was replaced for $100,000 and is in full compliance with Farmington Hills’ standards.
  • Highly Sought After Location and Low Cost Basis: Not only is the Hotel in the Detroit Metro area, a very popular and rapidly growing market for hotels, but the Hotel can be purchased at an attractive basis, in contrast to other Detroit submarkets. Metro Detroit has seen notable traction in hotel sales this year, making it a highly attractive submarket to invest in.
  • Highly Visible Asset: The Property is highly visible from the respective major throughway, Highway 696, and garners significant foot traffic through this accessibility.
  • Extended Stay Model: The Property’s extended stay model makes it a very popular selection for long-term guests in the area drawn in from extended projects while extended stay hotels are also currently the most popular hotel asset class for transactions.
  • Upside From Replacing Existing Management: The Property presents an opportunity for an investor to purchase the Hotel unencumbered by a management agreement but encumbered by the MainStay flag. An investor possesses the opportunity to bring in a new management company or operate internally and seek to revamp the operational strategy of the Hotel.
  • Offered at a Discount to Replacement Cost: The acquisition of the Hotel represents a fee simple opportunity for investors to acquire a well-constructed and recently renovated, midscale asset at pricing well-below replacement cost.
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37555 Hills Tech DrFarmington Hills, MI 48331

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Listing provided by Revere CRE