Tru by Hilton Investment
For Sale
Contact for pricing
510 Wakarusa Dr, Lawrence, KS 66049
82-room hotel near University of Kansas in Lawrence, Kansas.
Property Size38,094 SF
Lot Size2.10 Acres
Price / SF$196.88
Days on Market176
Property Features for 510 Wakarusa Dr
General Information
Standard status
Active
Size
38,094 SF
Lot size
2.10 Acres
Property subtype
Hospitality
Zoning
Commercial
Investment Type
Stabilized
Net Operating Income
$643,420
Building Details
Year Built
2017
Buildings
1
Stories
4
Listing Agency:
BSG Hotels Limited
Listed By:
Aaditya Patel · License #768854
Source:
Crexi
Added: Mar 6
Changed: Aug 23
Last Checked: Aug 29 at 9:18AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of BSG Hotels Limited
Investment Insights
Based on property information with market context.
Located in Lawrence, Kansas, this Tru by Hilton hotel presents an investment opportunity. The four-floor property features 82 rooms and spans 38,094 square feet on a 2.10-acre lot. Situated on Wakarusa Dr, the hotel is located near the University of Kansas, Kansas City, Rock Chalk Park, and Clinton Lake. The property is positioned to attract both business and leisure travelers. Nearby attractions include Theatre Lawrence, Clinton Lake, and Massachusetts Street. Launched in 2016 by Hilton, the hotel offers an opportunity to become a new Hilton franchisee or expand an existing relationship with Hilton.
Key Highlights
- High‑performing Tru by Hilton hotel with 82 rooms, offering strong cash flow potential.
- Prime location in Lawrence, Kansas, near the University of Kansas (KU), Kansas City, Rock Chalk Park, and Clinton Lake.
- Value‑add opportunity in a rapidly expanding city with excellent demographics and steady market growth.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$237,492
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.17%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,749,840
$4.7M
Cap Rate 7%
$3,392,743
$3.4M
Cap Rate 9%
$2,638,800
$2.6M
Market Conditions
NOI Build-Up for 38,094 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$571.4K $15.00/SF
− Vacancy
−$71.4K −$1.88/SF
EGI
$500.0K $13.13/SF
− OpEx
−$262.5K −$6.89/SF
NOI
$237.5K $6.23/SF
Area
Douglas County, KS
Vacancy
12.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,749,840
Cap Rate 7%
$3,392,743
Cap Rate 9%
$2,638,800
Alternative Uses
Best Use
Hotel Hospitality
$3.39M
$2.97M – $3.96M
NOI $237,492 @ 7.0% cap · market cap 3.17%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$11.21M
$9.81M – $13.08M
NOI $784,701 @ 7.0% cap · market cap 10.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Explore this area
Business Placement
Demographics for 66049, KS
32,131
Population
15,405
Households
2.1
Avg Household Size
37
Median Age
62%
College-Educated
96%
High-School Grad
45.2 sq mi
ZIP Area
711
Density / Sq Mi
$90,755
Median Household Income
$49,826
Median Earnings
$1,145
Median Rent
$362,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - 82-room hotel near University of Kansas in Lawrence, Kansas.
Where is this hotel located?
The property is located at 510 Wakarusa Dr Lawrence, KS.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: High‑performing Tru by Hilton hotel with 82 rooms, offering strong cash flow potential.; Prime location in Lawrence, Kansas, near the University of Kansas (KU), Kansas City, Rock Chalk Park, and Clinton Lake.; Value‑add opportunity in a rapidly expanding city with excellent demographics and steady market growth.
