Wichita Economy Hotel
For Sale
Contact for pricing
550 S Florence St, Wichita, KS 67209
Two unencumbered hotels in Wichita, Kansas with 140 rooms.
Property Size55,347 SF
Price / SF$75.88
Days on Market857
Property Features for 550 S Florence St
General Information
Standard status
Active
Size
55,347 SF
Property subtype
Hospitality
Zoning
GC, LI
Investment Type
Value Add
Building Details
Year Built
1965
Year Renovated
2023
Listing Agency:
Avison Young - Atlanta
Listed By:
Mihir Chokshi · License #406685
(404) 421-4645
Source:
Crexi
Added: May 1, 2024
Changed: Aug 16
Last Checked: Aug 31 at 5:24AM
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 Avison Young - Atlanta
Investment Insights
Based on property information with market context.
The Economy Hotel Wichita Portfolio features 140 rooms across two independently branded economy hotels located in Wichita, Kansas. Offered fully unencumbered of management and debt, the portfolio allows a new owner the opportunity to retool property-level operations with fresh capital. The properties are available for purchase as a portfolio or individually. The portfolio is offered at a discount compared to the price to replicate the same assets today, offering a new investor immediate value.
Key Highlights
- Available at a substantial discount to replacement cost.
- Unencumbered of debt and management.
- Existing in‑place cash flow.
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
$143,101
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
3.41%
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%
$2,862,020
$2.9M
Cap Rate 7%
$2,044,300
$2.0M
Cap Rate 9%
$1,590,011
$1.6M
Market Conditions
NOI Build-Up for 55,347 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
$717.3K $12.96/SF
− Vacancy
−$416.0K −$7.52/SF
EGI
$301.3K $5.44/SF
− OpEx
−$158.2K −$2.86/SF
NOI
$143.1K $2.59/SF
Area
Wichita, KS
Vacancy
58.00%
Lease Rate
$12.96 /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%
$2,862,020
Cap Rate 7%
$2,044,300
Cap Rate 9%
$1,590,011
Alternative Uses
Best Use
Hotel Hospitality
$2.04M
$1.79M – $2.39M
NOI $143,101 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.70M
$11.99M – $15.99M
NOI $959,287 @ 7.0% cap · market cap 22.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
626
Businesses Nearby
Explore this area
Business Placement
Demographics for 67209, KS
14,217
Population
5,381
Households
2.6
Avg Household Size
38
Median Age
35%
College-Educated
94%
High-School Grad
12.3 sq mi
ZIP Area
1,156
Density / Sq Mi
$86,103
Median Household Income
$47,939
Median Earnings
$942
Median Rent
$209,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Two unencumbered hotels in Wichita, Kansas with 140 rooms.
Where is this hotel located?
The property is located at 550 S Florence St Wichita, KS.
What is the asking price?
The asking price for this property is $4,200,000.
What are key features of this property?
This property features: Available at a substantial discount to replacement cost.; Unencumbered of debt and management.; Existing in‑place cash flow.
