3473 Hammer LnStockton, CA 95219

This exceptional 120-key hotel, the Budget Inn and Suites, presents a compelling investment opportunity in Stockton, CA. Located at 3473 W Hammer Ln, 95219, this 32,954 square foot property sits on a 1.49-acre lot and boasts a recent 2023 renovation. Built in 1988, the hotel offers significant value-add potential, with projections indicating a substantial increase in revenue and net operating income (NOI). The current NOI is $724,512, with a pro-forma NOI projected at $988,235, resulting in a pro-forma cap rate of 12.92%. The asking price is $7,650,000, translating to a price per key of $63,750 and a price per square foot of $232.14. Stockton's strategic location, offering proximity to both San Francisco and Sacramento, coupled with its relatively inexpensive land costs and diversified economy, makes this a particularly attractive investment. The property's projected revenue for 2025 is $2.4 million, with an estimated annual NOI (before debt service) of $920,000. A projected annual cash-on-cash return of approximately 12% further enhances the investment appeal. The opportunity exists to implement strategic operational changes, including bringing in a new third-party management company to optimize operations and manage costs effectively. This hotel offers a strong foundation for significant returns, making it an ideal acquisition for investors seeking a value-add opportunity in a growing market. There is no ground lease associated with this property.