Most lenders would require a business plan, a down payment from 25% to 35% , a 15 to 25 year amortization, and interest rates that are normally 200 basis points above conventional residential rates. The more the financing costs a buyer in down payment, interest, or other terms, the less they can afford to pay for a property or its renovations.
The Small Business Administration offers a SBA 7(a) Loan program that covers loans between $100,000 to $2,000,000. SBA would guarantee up to 75% of the loan, and the owner/operator/developer would need anywhere from a 10% to 75% down payment. The loans are fully amortizing for a period between 7 to 25 years depending on use of proceeds. Motels are included as businesses that qualify for this type of financing.
The lower the risk in a property, the lower the return the buyer/investor anticipates, the higher the sales price. Unfortunately the chances of finding a hotel/café/gallery operator are not near as likely as finding individual operators with good track records.
Possible Sales solution:
Create a business condominium with ownership of the structures broken up as follows:
79 to 82 (depending on the number of the storage rooms are converted back) unit motel would be sold to a motel operator
The old Turquoise café would be sold to a established restaurant operator
Ownership of the basement would be maintained by the City of Albuquerque, preserved and protected the artwork, and offering the facility as a meeting room--managed by the Highland Senior Center or similar City operation.
The building located on the far southeast corner of the parcel (labeled #2 on page ) contains six (6) units that would make an ideal conversion to a retail use as a supporting industry - like a gallery, gift store, curio store, travel information center.
The land and the structure would be protected under a condominium owners association that would set forth codes, covenants, and restrictions and manage the common area elements together.
Master Owner/Leasing Solution:
A similar solution could also be achieved by selling the entire facility as one large operation, most likely at a discount from the condo-sale solution as the operator would want to hedge his risk for leasing their non-core competencies (i.e. a hotel operator does not typically run a restaurant or gift shop/gallery).