Marcus & Millichap brokered the sale of Cobblestone Hotel & Suites Killdeer, a 44-room hotel and eight-unit apartment property at 158 Rodeo Drive in Killdeer, North Dakota.
The property sold for $4 million. Marcus & Millichap Capital Corporation (MMCC), a subsidiary of Marcus & Millichap, arranged $3.4 million in acquisition financing.
Joseph Ferguson, Jon Ruzicka, Jake Erickson, Jared Plamann and Reed Gizinski, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, Zipper Enterprises, Inc. Ruzicka and Ferguson procured the buyer, GBAAZ, LLC.
The MMCC team was led by Dallas-based managing director Pete Fehlman and associate director Jake Marshall. The team worked on behalf of Jay Takhar with GBAAZ to secure 85% loan-to-cost SBA 7(a) financing at a rate of WSJ Prime plus 1% (adjusted quarterly).
Built in 2012, the Cobblestone Hotel & Suites has experienced significant recent upgrades ensuring modern and appealing accommodations. Killdeer’s status as an oil town and its proximity to key drilling sites creates a consistent demand for both hospitality and residential lodging, driven by the area’s industrial activities in addition to seasonal tourism. The property’s residential component consists of two four-unit buildings with 1,700-square-foot apartments, each featuring two bedrooms, one bathroom and access to eight garage stalls.
