Price: $3,300,000 | #1 Ranked Hotel in Capitola by TripAdvisor | 210 Esplanade, Capitola, CA

CAPITOLA HOTEL | CAPITOLA, CAA Trophy Hotel Investment Oppotunity

RYAN CLARK+1 831 755 1635ryan.p.clark@cushwake.comLIC #02012077

Exclusivley Listed By:

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MARKET OVERVIEW

Cushman & Wakefield has been engaged as exclusive advisors to The Capitola Hotel (the “Seller”), in connection with Seller’s solicitation of offers for the purchase of 210 Esplanade located in Capitola, California (“The Property”). Said solicitation and potential sale to be governed by this Confidential Offering Memorandum, as it may be modified or supplemented (the “Offering Memorandum”) and a purchase agreement. Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Prospective purchasers are further advised that the Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of a purchase agreement. The Property is being offered on an “AS IS” basis. This Offering Memorandum is furnished to prospective purchasers on a confidential basis solely for the purpose of prospective purchasers determining whether to submit an offer to purchase the Property. The information contained herein, or any other related information provided by Seller may not be reproduced or redistributed or used in whole or in part for any other purpose. No person has been authorized to give any information or to make any representation or warranty, either express or implied, other than those contained in an executed purchase agreement subject to any disclaimer or limitations set forth therein, and if given or made in any other form, such information or representation should not be relied upon. While Seller has no reason to believe that the information provided herein, or in the due diligence materials, contain any material inaccuracies, neither Seller nor any of its respective officers, directors, shareholders, owners, employees, agents, members, managers, etc., make any representations or warranties, express or implied, as to the validity, accuracy or completeness of the information provided or to be provided except as may be set forth in an executed purchase agreement, subject to any disclaimers or limitations set forth therein. Without limiting the generality of the foregoing sentence, nothing herein shall be deemed to constitute a representation, warranty or promise by Seller nor any of its respective officers, directors, shareholders, owners, employees, agents, members, managers, etc., as to the future performance of the Property or any other matters set forth herein. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in the Due Diligence Materials, shall be limited to those expressly provided in an executed purchase agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or any of its officers, directors, shareholders, owner’s employees, agents, members, managers, etc., for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. Prospective purchasers are not to construe the contents of this Offering Memorandum, any Due Diligence Materials or any prior or subsequent communications from Seller or any of its respective officers, directors, shareholders, owners, employees, agents, members, managers, etc. as legal, tax or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

INTRODUCTION Cushman & Wakefield is pleased to offer the fee simple interest of the Capitola Hotel, located at 210 Esplanade, Capitola, California.

The Capitola Hotel is strategically positioned on Esplanade in the Capitola Village. This ten room boutique hotel is directly across the street from the iconic Margaritaville and Pizza My Heart Restaurants. Capitola sits in California’s oldest seaside resort town and continues to be a popular spot for those looking for a picturesque, quaint and relaxing vacation destination.

Capitola has a unique charm with its beautiful beaches and historic and colorful architecture, reminiscent of a Mediterranean village. The City of Capitola sits on the shores of the Pacific Ocean along Monterey Bay. Located just 35 miles southwest of San Jose and less than a two hour drive from San Francisco, “Camp Capitola” began as a popular beachfront tourist destination. Today the City maintains those roots and has added a vibrant commercial district and several distinct residential neighborhoods. Nearly 10,000 people call Capitola home, and countless more visit to enjoy both its natural beauty and other attractions. Named one of Sunset magazine’s best beach towns, Capitola has fishing and boating services and a popular surf break. Capitola has an array of restaurants, shops, and entertainment.

Capitola Village faces a wide beach, with a breathtaking view of Monterey Bay adjacent to the mouth of Soquel Creek. The Village has welcomed visitors for nearly 150 years and is home to numerous boutiques, galleries, and restaurants. Concerts fill Esplanade Park and the beach with music throughout the summer. Each Labor Day weekend, the Begonia Festival brings flower-draped floats to the creek and a sand castle contest to the beach, along with other family-friendly activities. Each fall the Village also hosts the Capitola Art & Wine Festival, which features more than 200 artists and nearly two dozen area wineries. The wharf and Capitola Historical Museum offer year-round diversions.

›› Walking distance to restaurants, bars, shopping and beaches

›› Across the street from the iconic Margaritaville and Pizza My Heart Restaurants

›› Interior corridor Hotel

›› Current Owners have created an amazing “good will” for new owner per onilne reviews, repeat clients, and word of mouth

›› Santa Cruz County brings in over 3 million visitors annually

›› #1 Ranked Hotel in Capitola by TripAdvisor

›› Irreplaceable, One of a kind Capitola Village Real Estate

›› Business included with sale

›› Significant upside in a tremendous barrier to entry location

›› Hotel can be rented out in its entirety via Air B&B or property website

›› Recent rooom renovations and upgrades

INVESTMENT HIGHLIGHTS

LOCATION OVERVIEW

PROPERTY OVERVIEWROOM TYPE Name #

SINGLE QUEENNEVIS, CURACAOARUBA, JAMAICA 4

SINGLE QUEEN(DOG FRIENDLY ROOM) MARTINIQUE 1

DOUBLE QUEEN (FAMILY OR FRIENDS ROOM) Grand Cayman 1

SINGLE KINGPARADISE ISLAND, BONAIREANTIGUA, GRAND BAHAMA 4

TOTAL 10

ROOM BREAK DOWN

AMENITIESLocated in the iconic Capitola Village, steps away from restaurants, bars, and shopping

Steps away from the Capitola Beach

High speed internet

Flat screen TVs with Premium cable

Meeting / event space that accomodates up to 25

Mini refridgerators in all rooms

Dog friendly roomKitchenette in family / friends room with a private entrance and private patio

ADDRESS 210 Esplanade, Capitola CA

BUILDINGS 2

STORIES 2

ROOMS 10

HOTEL SIZE ±3,360 SF

YEAR BUILT 1950

PARCELS (S) 2ASSESSORS PARCEL NUMBERS

035-221-08-000035-221-09-000

FOUNDATION Concrete slab

FLOORS Exterior - BrickInterior - Wood & carpet

EXTERIOR WALLS Wood frame with stucco

ROOF TPO roofing membrane

HVAC Roof mounted HVAC units

SPRINKLERS 100% Fire sprinklers

PARKING Off site parking options

LAND AREA (SF) ±2,265 SF

PROPERTY TYPE Hotel

MARKET Santa Cruz County

PROPERTY DETAILS

CLICK HERE FOR PROPERTY VIDEO

MARKET OVERVIEW LOCATION HIGHLIGHTS, STATISTICS & OVERVIEWSanta Cruz County AreaSanta Cruz County is situated on the central coast approximately 65 miles south of San Francisco and 30 miles southwest of San Jose. The metro stretches along 29 miles of Pacific coastline from the north end of Monterey Bay to the south side of San Mateo County. The area is known for its beaches, redwood forests, agriculture, and university. The education and health services sector is a mainstay of the economy and has consistently produced significant job gains reaching 20% above the prerecession peak of employment. Traditionally, metros with a strong employment base in education and health services have had less market volatility, particularly during a recession.

Santa Cruz has often functioned as a gateway to the Silicon Valley, and a number of startup tech companies such as Slick, Impact Scorecards, and Fuzz Station are creating jobs. Drawn to the area by its beaches, water sports, marine life, hiking, and food and wine, over 3 million visitors come to Santa Cruz every year.

Tourism continues to grow, with visitor spending approaching $850 million in 2016, an increase of $9 million from the previous year. Santa Cruz has become a popular tourist destination for Bay Area locals this cycle, which has boosted leisure and hospitality employment to about 15% above prerecession peak levels.

Capitola is California’s oldest seaside resort town and continues to be a popular spot for those looking for a picturesque, quaint and relaxing vacation destination. Capitola has a unique charm with its beautiful beaches and historic and colorful architecture, reminiscent of a Mediterranean village.

Hospitality OutlookThe hospitality industry in the U.S. has experienced healthy growth since the great recession ~ 10 years ago. Santa Cruz County’s hotel sector is no different. Compared to the worst year of the economic downturn, 2009, with hotel revenues reported at $71 million, Santa Cruz Hotels garnered a combined revenue of $141 million in 2016. Room rates are up nearly 30% and occupancy is up nearly 15%. Santa Cruz Hotels cater to family vacations, romantic getaways and business trips. Hotels near the beach, popular surf spots and the Santa Cruz Beach Boardwalk provide stunning coastal views of the Monterey Bay and easy access to restaurants and nightlife destinations.

MARKET OVERVIEW LOCATION HIGHLIGHTS, STATISTICS & OVERVIEW

The Santa Cruz Beach Boardwalk is an oceanfront amusement park in Santa Cruz, California. Founded in 1907, it is California’s

oldest surviving amusement park and one of the few seaside parks on the West Coast of the United States. The admission-free

attraction features thrill rides like the famous Giant Dipper roller coaster, kiddie rides, games, shops, food, and year-round indoor

activities. Admission is free. Ride tickets may be purchased per ride, per day, or per season. Summer entertainment includes Free

Friday Night Bands on the Beach.

Santa Cruz County Parks and Beaches. Many state parks in Santa Cruz County feature unbroken trails which begin in redwood-

covered mountains and end on the rugged, windswept beaches of the Pacific Coast. The vast preserves of open spaces in Santa Cruz

County are a tribute to conservation efforts that began over a century ago. Today, Santa Cruz County has an extraordinary number of

state parks - 14 in all - and each offers a unique experience for visitors. For campers, New Brighton, Manresa Uplands and Sunset state

beaches provide camping on bluffs above the water or inland among the pines. At Seacliff, campers nestled in their RVs are lulled to

sleep by rhythmic waves right on the beach. Santa Cruz County has 29 miles of beaches. Surfing is popular at Manresa and Natural

Bridges and swimmers love Twin Lakes beach. For picnics, large groups love it at New Brighton, Seacliff and Sunset. Barbecue grills and

picnic tables for smaller groups line the long stretch of sand at Seacliff State Beach. The beaches of Seabright, Twin Lakes, Rio Del Mar,

Manresa and Sunset have fire rings for building campfires. This creates an idyllic setting for watching the sunset.

CLICK HERE for more Information

The University of California, Santa Cruz (also known as UC Santa Cruz or UCSC), is a public research university and one of 10 campuses in the University of California system. Located 75 miles (120 km) south of San Francisco at the edge of the coastal community of Santa Cruz, the campus lies on 2,001 acres (810 ha) of rolling, forested hills overlooking the Pacific Ocean and Monterey Bay.

Founded in 1965, UC Santa Cruz began as a showcase for progressive, cross-disciplinary undergraduate education, innovative teaching methods and contemporary architecture. Since then, it has evolved into a modern research university with a wide variety of both under-graduate and graduate programs, while retaining its reputation for strong undergraduate support and student political activism. The residential college system, which consists of ten small colleges, is intended to combine the student support of a small college with the resources of a major university.

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FOR MORE INFORMATION INCLUDING FINANCIALSCONTACT:

RYAN CLARKSenior Associate+1 831 755 1635

ryan.p.clark@cushwake.comLic. #02012077

Cushman & Wakefield1 Lower Ragsdale Dr.Building 1, Suite 100Monterey, CA 93940

www.cushmanwakefield.com

Photo circa 1960