Building Details

Year Built 1998

Buildings 1

Stories 3

Listing Agency: Hospitality Funding

Listed By: NEVILLE PARUJANWALA · License #01821487 Show Phone

Source: Crexi

Added: Nov 19, 2024 Changed: Aug 16 Last Checked: Aug 31 at 5:28AM

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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 Hospitality Funding

Investment Insights

Based on property information with market context.

This well-maintained Holiday Inn Express is located at 4525 Howard Road, Westley, CA. The 65-room property is strategically situated along Interstate 5, a key route connecting Northern and Southern California. Positioned directly off I-5, the hotel attracts a steady flow of travelers, including families, business professionals, and long-haul drivers. It is located close to major distribution centers in Patterson and Tracy, including Amazon and Walmart, which bring in business travelers. Local attractions include Diablo Grande Resort, San Joaquin River National Wildlife Refuge, and Modesto attractions like McHenry Mansion and Gallo Center for the Arts. Guest-friendly amenities include an outdoor pool, fitness room, market pantry, breakfast area, guest laundry, and 65 on-site parking spaces. The site size is 91,476 SF (2.10 acres). The property was built in 1998 and offers a strong return potential with its strategic location, excellent amenities, and consistent demand from both leisure and business travelers.

Key Highlights

• Prime location directly off Interstate 5, ensuring high visibility and accessibility for travelers.
• 65‑room hotel, offering substantial revenue potential.
• Proximity to major distribution centers (Amazon, Walmart) in Patterson and Tracy, driving business traveler demand.

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

$573,555

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

7.26%

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%

$11,471,100 $11.5M

Cap Rate 7%

$8,193,643 $8.2M

Cap Rate 9%

$6,372,833 $6.4M

Market Conditions

NOI Build-Up for 91,476 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

$1.37M $15.00/SF

− Vacancy

−$164.7K −$1.80/SF

EGI

$1.21M $13.20/SF

− OpEx

−$633.9K −$6.93/SF

NOI

$573.6K $6.27/SF

Area

Stanislaus County, CA

Vacancy

12.00%

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%

$11,471,100

Cap Rate 7%

$8,193,643

Cap Rate 9%

$6,372,833

Alternative Uses

Best Use

Hotel Hospitality

$8.19M

$7.17M – $9.56M (±1% cap)

NOI $573,555 @ 7.0% cap · market cap 7.26%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$42.52M

$37.20M – $49.60M (±1% cap)

NOI $2,976,205 @ 7.0% cap · market cap 37.67%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Hotels

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Explore this area Business Placement

Demographics for 95387, CA

739

Population

268

Households

2.8

Avg Household Size

28

Median Age

18%

College-Educated

55%

High-School Grad

21.5 sq mi

ZIP Area

34

Density / Sq Mi

$55,833

Median Household Income

$35,361

Median Earnings

$1,289

Median Rent

$348,900

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Hotel - 65-room Holiday Inn Express near I-5 with strong potential.

Where is this hotel located?

The property is located at 4525 Howard Rd Westley, CA.

What is the asking price?

The asking price for this property is $7,900,000.

What are key features of this property?

This property features: Prime location directly off Interstate 5, ensuring high visibility and accessibility for travelers.; 65‑room hotel, offering substantial revenue potential.; Proximity to major distribution centers (Amazon, Walmart) in Patterson and Tracy, driving business traveler demand.