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The AmericInn Lodge & Suites of Coon Rapids

Coon Rapids, Minnesota

We completed the sale of the Coon Rapids AmericInn. This property is located in a northern suburb of Minneapolis, Minnesota. Just as the overall hotel industry trended in 2009, this hotel saw significant reductions in revenue as well. This assignment came to us with the goal of getting the best value possible from a buyer that was capable of securing financing and closing in a reasonable timeframe.

Our initial challenge was to find a buyer familiar with the market and be able to demonstrate to a lender that they could stabilize revenues. This buyer also had to have a strong performance record to secure financing. Our second challenge came after the property was under contract and the franchisor made changes to the initial Franchise Agreement and to changes in the Property Improvement Plan proposed early in the sale process.  These changes threatened to terminate the sale.

Sale highlights: We conducted a broad marketing campaign that produced inquiries from buyers across the U.S. and as far away as India. Ultimately our best candidate came from the local area and had a good relationship with a locally based lender familiar with this market. Once the property was under contract we had to adapt to Property Improvement Plan and franchise agreement changes made by the franchisor. By assisting the buyer with his negotiations with the franchisor we were able to reach a suitable agreement between these parties and move the sale forward. Key to this success was listening to the lender's input and incorporating its requirements into the agreements.

After the sale we continued working with the seller and the buyer to ensure a smooth and equitable transition continued for both parties.