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Abbington’s Sea View Motel and Cottages

The B&B Team® Page 1

Abbington’s Sea View Motel and Cottages Lincolnville, Maine

Offered at $299,000

Inn Consultants and Brokers Since 1993

35 Western Avenue, Suite 5 Kennebunk, Maine 040403

Tel 207.266.5604 [email protected] www.bbteam.com

© Copyright 2013 The B&B Team, Inc.



Table of Contents

Broker Disclaimer / Non-‐Disclosure Page 3

Property Description

Property Highlights Page 4

Overview Page 5

Property Tour Page 5-‐7

Financial Highlights Page 8

Property Facts Page 9

Market Analysis

Area Location Page 10

History of Lincolnville Page 11

Weather Page 12-‐13

Access and Visibility Page 13

Market Position and Competition Page 13

Market Potential Page 14

Investment Considerations Page 14

Additional Sources of Information Page 15

Other Documents and Attachments Page 15

Deed

Supporting Financial Statements and Worksheets

Inventory of Personal Property

Seller’s Property Disclosures

Photos of owner’s quarters



Broker/Consultant Disclaimer

The B&B Team® and its representatives believe that the information contained herein is accurate and has been obtained from sources it believes reliable, including the owners of the property and business, but it has not been independently verified, is not guaranteed and is submitted subject to errors, omissions, change of price, prior sale, or withdrawal without notice. There may be additional information available to a purchaser from other sources. Purchasers should exercise whatever due diligence they feel is necessary and should not rely upon the information contained herein. Neither The B&B Team nor its representatives warrant the suitability of the property for any particular purpose and do not assure the success of any future or contemplated business venture. If you have received this from anyone other than The B&B Team or someone authorized by The B&B Team, its use is strictly prohibited.

Non-‐Disclosure of Material

This buyer’s offering report contains information of a sensitive nature. The owners of the property and business herein described do not want this information shared with anyone other than your legal and tax advisors; therefore, this information is released on the understanding that it will not be reproduced or disseminated without written permission of the Broker or Consultant and only after agreeing, in writing, to maintain the confidentiality of the information.



Property Description Abbington’s Sea View Motel and Cottages in Lincolnville, Maine

Property Highlights

• 6 unit motel plus 8 individual cottages

• lot size: 2.4 acres

• Built in 1952

• Newly lined in ground pool (unheated) with pump system, in great condition with deck lounge furniture

• owner’s quarters: currently the owner is living in the efficiency unit leaving 5 rental units in the motel

section. New owners could expand into the Suite next door which would provide a very spacious 2

bedroom 2 bath apartment, leaving 4 motel units and 8 cottages.

• well/septic

• gravel parking lot sufficient for all guest and owner cars

• siding: wood and vinyl siding

• flooring: vinyl, carpet

• heating: oil fueled, forced, hot water baseboard

• water heater: off heating system

• zoning: General Development

• Taxes: $6,919 -‐ 2014



Property Overview Situated between Camden and Lincolnville Beach with a view of Penobscot Bay, Abbington's is a family owned and operated motel located just a few minutes north of Camden Harbor in the town of Lincolnville, Maine. Lincolnville is a fascinating little town with its sand beach, artisans and galleries, a variety of restaurants featuring local foods, and was voted “One of the Top 20 Dream Towns” by Outside Magazine. Lincolnville is about 3-‐1/2 hours north of Boston and 2 hours south of Bar Harbor and Acadia National Park. The property was originally a 1950s motor court, and the owners have tried to maintain the original quaint charm of the place while making it comfortable for today’s traveler with queen size beds and free Wireless Internet. They are conveniently located on US Route 1 and have a number of lodging options. Abbington’s is geared towards family travel, with its pool, acres of grass, and outdoor games, and is also a great place for “seasoned” travelers due to a number of ground level and affordable rooms. Most of the rooms have views of Penobscot Bay. They also have a number of “pet friendly” cottages for those who prefer to travel with their pets.

Property Tour







Property Statistics Financial Highlights

Price: $299,000

2013 Gross Revenue (13 units): provided with NDA

Revenue per room: provided with NDA

Gross Room Revenue: provided with NDA

Gross Food & Beverage Revenue: $0

Adjusted Net Operating Income: provided with NDA

Occupancy Rate, seasonal (May-‐Oct): provided with NDA

Occupancy Rate, annualized: provided with NDA

Average Daily Rate (ADR): provided with NDA

Revenue per Available Room (RevPAR): $ provided with NDA

Room Rates: $74 -‐ $149

Gross Revenue Multiplier (GRM): provided with NDA

2008 income (14 units): provided with NDA

Highest income 2009 (14 units): provided with NDA

2010 income (14 units): provided with NDA

*2011 income (13 units): provided with NDA



*Owner lived offsite until 2011 and then occupied the efficiency apartment



Property Facts

Owner: Gregory Ciraldo, Virginia Ciraldo

Address: 4 Sea View Drive, Lincolnville, ME 04817

Legal Description: Book 1993, page 257 of Waldo County Registry of Deeds

Land: 2.4 acres

Zoning: General

Designated Use: Motel

Construction: Wood frame with wood and vinyl siding

Roof: Composition shingle

HVAC : Propane, forced hot air, hot water baseboard

Hot Water: Off heating system

Internet: Wireless throughout

Water: Private

Sewer: Private



Market Analysis Area Location Camden, Rockland, Lincolnville Beach & Beyond

Located just 4 miles north of Camden, on Atlantic Highway (US Route 1) in Maine’s Midcoast area, is the town of Lincolnville Beach. Although it will never rival the name recognition of our more famous neighbor, Lincolnville Beach is within minutes of all of Camden’s attractions while offering quite a few of its own on a road less traveled. Spend a few days, or a week, in Lincolnville and you will truly experience why Maine is such a special place.



History of Lincolnville

Lincolnville forms the south-‐eastern point of Waldo County, being about 7 miles in length and 4 in width. It lies on the western shore of Penobscot Bay, 12 miles south of Belfast, and is on the stageline from Bangor to Rockland. Lincoln was formed of the plantations of Ducktrap and Canaan. It is bounded by Northport and Penobscot Bay on the north-‐east and east, Searsmont and Belmont on the north-‐west, Hope on the south-‐west, and Camden on the south. Nearly the entire border of the town is covered by hills or ponds. The highest is Peaked Mountain, standing on the eastern line and partly on Northport, which has an altitude of about 800 feet. The other most notable eminence is Muddy Mountain, lying at the extreme western part of the town. Pitcher Pond extends along the north-‐eastern line, lying partly in Northport. Its outlet, Ducktrap River, is the principal stream in the town. Andrew's Pond lies near the centre of the town, and Fletcher Pond in the western part. The closely-‐connected ponds, named Lincoinville, Canaan and Horton, in the south-‐western part, cover a large area in this town and in Camden. Ducktrap Stream has a pond surface of about 2,800 acres, and the faIl on the stream is 300 feet in 3 miles. The principal power is about 20 rods above Ducktrap bridge, and 40 rods from high-‐water mark. A canal could be made with a small outlay to conduct the water below the bridge, where factories could be built close upon tide-‐water, where vessels could lie beside them. This river, with feasible improvements, could be made to increase its power to be equal to carrying 75,000 spindles. McCobb Stream, Gould, Kendal and Andrew's Ponds each furnish some power; and each of the three last have a mill. The town has six lumber mills, a grist mill, a tannery, several lime and granite quarries, the last material being of a superior quality. There arc also manufactured here in small quantities tinware, boots and shoes and carriages. The surface of the town is generally broken, rocky, buggy and mountainous. The villages are Lincolnville Centre and The Beach, the latter the same as Lincolnville post-‐office. The nearest railroad connections are at Belfast and Rockland, each about 12 miles distant. There is connection eastward and with Boston by steamers. Lincolnville was incorporated June 23, 1802. John Studley and a Mr. Wilson commenced a residence in tile town in 1774, and were the first settlers.



The Weather



Access and Visibility

Lincolnville sits in the middle of the “mid-‐coast”, about halfway between Portland and Bar Harbor/Acadia National Park. It’s a very popular stopover destination to and from Kennebunkport, Portland and Acadia. The inn’s location right along scenic Route 1 makes for easy access.

Market Position and Competition

Tourism is the number one industry in the state so the lodging choices in this area are wide-‐ranging, from small inns and bed and breakfasts to a few larger motels and hotels. Abbington’s is one of 8 small scale motels/cottage type properties in town.



Market Potential

When looking at any business, determining market potential is at times an exercise in creative imagination. A study of the revenue patterns for the past few years at Abbington’s will indicate a dip after 2009 but not as much due to the economy or tourism as for personal reasons. 2009 was the best year and dipped in to the lowest in 2011 but is now back on the rise. The current owners have had the property around 14 years and are just moving on to different things.

With a continued disciplined approach to the business, judicious expenditures for room upgrades, controlled expenses, creative marketing and a new website, Abbington’s has the prospect of generating a comfortable ROI with a wonderful business and lifestyle for new owners.

Investment Considerations

The process for assessing and valuing the business is multi-‐layered. The first step is to look at an actual profit and loss statement.

The second step is to consider fixed and variable costs. How can you manage things more affordably? How will you increase revenue without increasing expenses? What can you do more efficiently? Can you market more aggressively? Based on your cash down, how will your net operating income work for you?

The most important part of the investment analysis is the debt coverage ratio. This is important in assessing whether a lender would consider the cash flow to be adequate to support a loan. They are generally looking for a number of at least 1.25 to 1.3. With the appropriate down payment and aggressive marketing and increase in revenue, the numbers will work.

There are additional parcels of land that can be sold with Abbington’s. The seller is offering them for $75,000 for the two lots. They are 066 and 066A on the photo below.



Additional Sources of Information

The property’s website: http://abbingtonsmotel.com

Link to Additional Property Photos: http://goo.gl/ZkEFQs

Other Documents Available

Deed

Supporting Financial Statements

Inventory of Personal Property

Seller’s Property Disclosures

Tax Map