Royal Inn - Value-Add Hospitality Asset with Redevelopment Potential 542403 US Highway 1, Callahan, FL 32011 Offered at: $1,200,000 Seller Financing Available $500,000 Down | 6% Interest-Only Terms Offered Property Overview: The Royal Inn presents a compelling investment opportunity in the rapidly growing corridor of Northeast Florida. Situated on a prominent hard corner along US Highway 1 in Callahan, this 24-room motel offers both immediate cash flow and significant upside potential through operational enhancements or redevelopment. Key Highlights: Room Mix: 12 single-bed rooms offered at $80/night and 12 double-bed rooms offered at $107/night (or $400/week on week to week basis) Additional Units: Includes an 1,360 square foot owner's suite and a 1,759 square foot separate commercial building currently leased to a jiu-jitsu school at $1,250/month (below market rate, previously occupied by a restaurant) for a total of 8,1999 heated square feet of commercial space. Current Operations: Owner-occupied and operated with minimal marketing efforts, generating approximately $125,000 in annual gross revenue. Parking: Ample on-site parking accommodating guests and potential future developments. Lot Size: Expansive parcel offering flexibility for various redevelopment options. Market Insights: Traffic Counts: The property benefits from high visibility with traffic counts exceeding 19,500 vehicles per day on US Highway 1 . Regional Growth: Callahan is experiencing increased commercial activity, with new developments such as Hagan Ace Hardware's 60,000 sq. ft. flagship store nearby . Hospitality Market: Comparable motels in the North East Florida area are listed at significantly higher price points, indicating a strong market for value-add opportunities. Investment Potential: Operational Upside: Implementing professional management and targeted marketing strategies could substantially increase occupancy and revenue. Redevelopment Opportunities: The property's size and location make it suitable for conversion to multifamily housing, extended-stay accommodations, or mixed-use developments. Strategic Location: Proximity to major highways and growing commercial centers enhances the property's appeal for various uses. This property was previously under contract with a national developer considering a Dunkin' Donuts location, underscoring its prime positioning and potential. Property Systems & Condition: The Royal Inn has a solid physical foundation with key system updates already in place, reducing near-term capital expenditure risk for investors or operators: Structure: Concrete Block Construction Roofing: Commercial building and owner’s suite roofs were replaced in 2024 Motel structure roof is approximately 12 years old and performing well Electrical: GFCI outlets present in wet areas Ownership believes the property is wired with copper (to be verified) Plumbing: PVC plumbing throughout the property Connected to city water and sewer Windows & HVAC: Updated windows across most units HVAC systems are in place and functioning for both the owner’s suite and the commercial building These improvements support ongoing operations while offering a strong baseline for repositioning or redevelopment.