Ground-Up Opportunity in Arizona: Permit-Ready Mesa Hotel

Aspect Hospitality Group offers an investment opportunity in a ground-up development of a 107-room, 4-story upscale Cambria Hotel in Mesa, Arizona. This permit-ready project, located in the Mesa Tech Corridor, features a rooftop bar, expanded lobby, and outdoor pool. With strong demand drivers from the booming Mesa market and experienced management, this investment projects excellent returns and ownership in a nationally branded hotel.

• Upscale Cambria Hotel: Nationally branded, select-service hotel with premium amenities including a rooftop bar and restaurant.
• High-Growth Market: Located in Mesa, Arizona, one of the fastest-growing cities in the U.S. and within the Mesa Tech Corridor.
• Strong Demand Drivers: Proximity to Mesa Tech Corridor (Meta, Google, Apple data centers), Arizona Athletic Grounds, and Phoenix-Mesa Gateway Airport.
• Permit Ready & Shovel Ready: Entitlements and construction plan approvals secured; groundbreaking targeted for May 2025.
• Experienced Management: Managed by Aspect Hospitality Group and O'Reilly Hospitality Management, with proven expertise in hotel development and operations.
• Projected Returns: Target IRR exceeding 23.2% and average annual cash-on-cash yield of 19%.
• Attractive Distribution Policy: Quarterly distributions and return of capital upon sale or refinance with a preferred return for investors.

Tim O’Reilly is CEO of O’Reilly Hospitality Management, LLC (OHM), managing over 42 hotels and restaurants. With a background in law and family business O'Reilly Automotive, Tim brings extensive experience in hotel development, operations, and management under brands like Hilton, Marriott, and Choice Hotels. OHM properties span 9 states with over 1,800 employees and $100M+ annual revenue.

Gary Abraham is Co-Founder and President of Aspect Real Estate Partners, Inc., with over 20 years in commercial real estate. Managing Director of Aspect Real Estate Partners, Inc., Gary has successfully guided clients through complex transactions and market strategies across office, industrial, and retail sectors in Southern California completing sales and lease transactions totaling over $100M in volume. Gary's expertise includes brokerage, financial modeling, acquisitions, and capital program development. He holds a BS in Physics and an MBA from UC Irvine.

Matt Beary is Founder and Principal of Clarity Strategic Opportunities and Claritas Property Management. With 25 years in real estate, private equity, and financial services, he has acquired over 1500 multifamily units valued at $160 million since Clarity's inception. Matt's focus is on value-add multifamily and (re)development opportunities. He holds a BA from the University of Illinois.

• Hotel Brand: Cambria Hotels (Choice Hotels International)
• Rooms: 107 Keys
• Stories: 4 (plus rooftop)
• Room Size: 300 SF to 480 SF
• Building Area: 60,979 SF
• Land Area: 2.1 Acres
• Location: 3457 S. Ellsworth Road, Mesa, AZ 85212 (Mesa Tech Corridor)
• Amenities: Rooftop bar & restaurant (3,400 SF), full-service lobby bar (2,000 SF), outdoor pool (2,500 SF), fitness center, meeting room (500 SF), general store, guest laundry, outdoor patio with fireplace.
• Parking: Surface parking with 107+ spaces

Mesa, Arizona, is a rapidly growing city with strong demand drivers for hospitality:

• Mesa Tech Corridor: Home to major data centers for Apple, Meta, Google, Amazon, and other tech companies, driving business travel.
• Arizona Athletic Grounds: A 320-acre sports complex hosting major youth and amateur sports tournaments, generating significant tourism.
• Phoenix-Mesa Gateway Airport: Growing airport with increasing passenger traffic and economic impact, facilitating travel to Mesa.
• Healthcare & Bioscience: Arizona's bioscience sector is rapidly expanding, with Mesa hosting major hospitals and healthcare facilities.
• Aerospace & Defense: Strong aerospace manufacturing presence in Mesa, contributing to local employment and business travel.
• Tourism & Events: Mesa is a popular tourist destination with attractions like Mesa Arts Center and MLB Spring Training, boosting hotel demand.
• Educational Institutions: Presence of ASU Polytechnic Campus, Mesa Community College, and other institutions attract visitors and support the local economy.

Cambria Hotels, by Choice Hotels International, is an upscale brand focused on guest satisfaction and localized experiences:

• Upscale Select-Service: Offers a premium guest experience with modern design and curated amenities.
• High Guest Satisfaction: Ranked #1 in Guest Satisfaction among upscale hotel brands by J.D. Power in 2023.
• Strategic Expansion: Rapidly expanding brand with new properties opening across top US markets.
• Localized Design: Each Cambria Hotel is designed to reflect the local culture and environment.
• Choice Hotels Backing: Benefits from the strong franchise system and resources of Choice Hotels International, a leading hospitality company.
• Strong Performance: Select-service hotels like Cambria historically perform well in various economic cycles.

Key Financial Highlights:

• Total Equity Raise: $5,000,000
• Investor Preferred Return: 12% annual
• Projected Investor Net IRR: 23.2% annual leveraged
• Projected Equity Multiple: 3.38x over 5-10 year hold
• Average Annual Cash-on-Cash Yield: 19%
• Investment Range: $100,000 to $5,000,000 (Units of $25,000)
• Distribution Policy: Quarterly cash flow distributions and capital event distributions after preferred return.

Sources and Uses of Funds (Summary):

The Cambria Hotel Mesa is strategically located within East Gate Plaza in the Mesa Tech Corridor, offering exceptional access and visibility:

• Mesa Tech Corridor Location: Situated in a hub of economic activity with major tech companies like Apple, Meta, and Google nearby.
• East Gate Plaza: Part of a 17-acre mixed-use retail center, ensuring built-in demand and amenities (Starbucks, Farmer Boys, etc.).
• Arizona Athletic Grounds Proximity: 8-minute drive to a major sports and entertainment complex, driving significant visitor traffic.
• Transportation Access: Close to Phoenix-Mesa Gateway Airport and major freeways, facilitating travel and accessibility.
• Growing East Valley: Located in Mesa's rapidly expanding East Valley, experiencing growth across residential, commercial, and industrial sectors.
• Local Amenities: Near shopping, dining, breweries, and outdoor attractions in Mesa and the surrounding area.

• Site Acquisition: Completed December 2024
• Entitlements & Approvals: Completed Q2 2024 (Permit Ready)
• Construction Start: Target Q2 2025
• Hotel Opening: Target Q3 2026
• Anticipated Hold Period: 5-10 Years

Invest in the Cambria Hotel Mesa for compelling reasons:

• High Return Potential: Target IRR of 23.2% and 19% cash-on-cash yield provide strong return prospects.
• Strategic Location: Mesa Tech Corridor and East Gate Plaza location ensures high demand and growth potential.
• Experienced Team: Aspect Hospitality Group and OHM bring proven expertise in development and hotel operations.
• Permit Ready Project: Reduces development risk with secured entitlements and approvals.
• Upscale Branded Asset: Cambria Hotels' strong brand and guest satisfaction enhance long-term value.
• Favorable Market Timing: Mesa's underserved hotel market and growing demand create an opportune investment window.
• Portfolio Diversification: Hotel investments offer unique benefits and diversification within a real estate portfolio.