home2-tru-madison-east-dual-brand

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DAN HAWKINS

Managing Director 240.793.0290dan.hawkins@berkadia.comDC License #SP200201313

Ryan Lindgren

Managing Director312.845.1884ryan.lindgren@berkadia.comIL License #475180379

JUSTIN STORER

Real Estate Analyst 774.275.7833 justin.storer@berkadia.comDC License #SP40003037

Michael Black

Real Estate Analyst312.845.8575michael.black@berkadia.comIL License #475211643

JAKE PIETRAS

Associate Director 410.940.9497 jake.pietras@berkadia.comMD License #5003787

H&H Investment Sales:

Katelyn Reynolds

Associate Director213.399.3390katelyn.reynolds@berkadia.com

Mauricio Rodriguez

Managing Director240.204.5133 mauricio.rodriguez@berkadia.com

Matt Raptosh

Managing Director 814.470.9983 matt.raptosh@berkadia.com

Michael Weinberg

Managing Director321.319.1419michael.weinberg@berkadia.com

Ethan Wagner

Senior Real Estate Analyst 814.574.7376 ethan.wagner@berkadia.com

Connor Wimsatt

Associate Director 240.204.5138 connor.wimsatt@berkadia.com

H&H Financing:

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada. © 2025 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.

2403 EAST SPRINGS DRIVE | MADISON, WISCONSIN 53704

THE LOCATION

Madison Metro Transit 9.2 million passengers served in 2024. Second-largest transit system in Wisconsin. +20 fixed-route buses. Construction of Bus Rapid Transit system launched in 2023. East-west route in 2024. North-south route to be open in 2028.

TRANSPORTATION

Dane County Regional Airport 6,500 direct and indirect jobs supported. 2.4 million passengers served in 2024. Offers about 100 daily flights on six airlines. Completed a major $85 million expansion project in 2023, adding a 90,000 square-foot south terminal with three new gates and various amenities. Generates an annual economic impact in excess of $600 million. Currently pursuing an international airport designation.

SAME

Madison Museum of Contemporary Art Independent, non-profit art museum. Hosts various events, including film screenings, artist talks, and community gatherings. Exhibitions cover a wide range of contemporary art forms, including painting, sculpture, photography, and multimedia installations.

The Sylvee 2,500-seat music venue. Host to a wide range of concerts and events.

SAME

Bridges Golf Course 18-hole public golf course. Wedding venue.

SAME

LEISURE

Edgewood College

55-acre campus. 2,470 students enrolled during the fall 2024 semester. About 1,400 live off campus.

Madison Area Technical College

14,992 students enrolled during the fall 2023 semester on Truax Campus. Public technical and community college. +150 hands-on training programs. Currently building a new $10 million academic facility.

EDUCATION

Promega

1,060 employees. Manufacturer of enzymes and other products for biotechnology and molecular biology.

CUNA Mutual Group

2,000 employees. $5.4 billion in revenues in 2024. Financial services company that provides insurance, investment, and technology solutions to credit unions and their members.

SAME

Baker Tilly

105,000 SF office. $5.6 billion in revenues in 2024. Global professional services network offering advisory, tax, and assurance services.

Alliant Energy

3,000 employees. $4.0 billion in revenues in 2024. Headquarters location.

UW Health University Hospital

18,000 employees across the metro. 505-bed medical center. Level One adult and pediatric trauma center. Wisconsin’s #1 hospital (2025 U.S. News & World Report).

UW Health Eastpark Medical Center

Delivered in October 2024. 475,000 SF. $465 million medical facility offering 40 types of specialty care. 840 employees.

MEDICAL

SAME

Wisconsin State Capitol

45,280 employees work for the state of Wisconsin countrywide.

Downtown Madison

6.5 million SF of office space. 2.2 million SF of retail space. +100 bars, cafes, and restaurants. +200 stores and entertainment options. Urban Outfitters. Capitol Square. The Orpheum Theater.

THE IMAGES USED IN THE OM ARE NOT SAVED IN THE 'MISC' FOLDER

Investment Highlights

Brand-new, premium constructed, Home2 Suites/Tru Dual-Brand expected to deliver in September 2025 offered at an attractive basis below today’s replacement cost Fee simple, non-union, and unencumbered of management Long-term FLA available with award-winning and rapidly growing brands that are bolstered by an industry-leading loyalty program – Hilton Honors Premier and highly amenitized East Madison location with diverse demand profile Outstanding expected financial performance to offer year 1 yield Favorable supply story with no new hotels under construction Highly accessible positioning at the confluence of I-90/94 and U.S. Route 151, with access to Dane County Regional Airport and the region’s most frequented metropolitan markets Primed to benefit from significant regional development activity and investment

2403 EAST SPRINGS DRIVE | MADISON, WISCONSIN 53704

Stories:

Additional Amenities:

Heated indoor saline pool, business center, fitness center, semi-private work pods (lobby), outdoor patio area with grills and fire pits, complimentary Wi-Fi, digital key, guest laundry

FLA Expiration:

March 2041

Food & Beverage:

Complimentary hot breakfast, Eat. & Sip. Market (Tru), Home2 Mkt (Home2)

Rooms:

Home2 Suites: 151 Tru: 68 Total: 219

Opening Date:

September 2025 (Expected)

Land Area:

4.61 acres

Tenure:

Fee Simple

Parcel:

0810-271-1404-0

Tenure:

Fee simple

Management:

Unencumbered

Labor:

Non-union

Developer:

Hawkeye Hotels

home2 Suites / tru by hilton madison east (dual-brand)

THE OFFERING

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Berkadia Hotels & Hospitality has been exclusively retained in connection with the solicitation of offers to acquire the fee simple interest in the 219-key Home2 Suites (151 rooms)/Tru (68 rooms) dual-brand by Hilton Madison East (the “Hotel,” “Asset,” “Property,” or “Dual-Brand”). Highly anticipated to deliver in September of 2025, the brand-new, premium constructed Home2 Suites/Tru will boast status as the newest hotel in the submarket, feature a superior product offering relative to each respective competitive set, and benefit from no immediate required going-in capital. Moreover, a new owner will benefit from rapidly growing, highly rated brands bolstered by an industry-leading loyalty program – Hilton Honors – and its 210 million global members. Both the Home2 Suites and Tru by Hilton flags have consistently been recognized as top brands in the J.D. Power North America Hotel Guest Satisfaction Index (NAGSI) study, with the Home2 Suites being ranked the #1 Upper Midscale/Midscale Extended-Stay brand for the second year in a row. The Dual-Brand is being offered fee simple, non-union, unencumbered of management, and at an attractive basis below today’s replacement cost. Strategically located on the east side of Madison, the new-build Hotel will be centered among 6.4 million square feet of office space, 6.9 million square feet of industrial space, and 6.1 million square feet of retail space within a 3-mile radius. Key demand generators and amenities in the immediate vicinity include the East Towne Mall (4.8 million annual visitors), The American Center (447-acre business park), McAllen Truax Business Park, UW Health Eastpark Medical Center (new $465 million medical/research facility), the 83-bed UW Health East Madison Hospital ($900 million expansion in-planning), 14,992-student Madison Area Technical College (currently amidst a $10 million expansion), TPC Wisconsin, and Dane County Regional Airport (2.4 million passengers in 2024), which is currently pursuing an international airport designation. Moreover, ideally positioned at the confluence of major regional thoroughfares – Interstate 90/94 (109,000 VPD) and U.S. Route 151 (100,000 VPD) – the Dual-Brand will be seamlessly connected to downtown Madison (9.7 million visitors in 2024), the University of Wisconsin Madison (52,000 students), Henry Vilas Zoo (830,000 annual visitors), Olbrich Gardens (372,000 annual visitors), and the Wisconsin State Capitol, among other higher education institutions, medical centers, corporate headquarters, biotech firms, and SMERF demand. Coupled with highly coveted and rapidly growing extended-stay and select-service flags, an ideal supply story with no new hotels under construction, significant local and regional development activity/investment, being offered below today’s replacement cost, and access to major metropolitan markets like Chicago and Milwaukee (both within a 2-hour drive), the brand-new Dual-Brand will provide a compelling investment opportunity in the current economic landscape.

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Spring 2019: Broke ground November 2022: Hotel delivered January 2023: Affiliate of the developer filed for Chapter 11 bankruptcy due to COVID impact and cost overruns, limiting the ability for the Asset to properly stabilize with a fully invested owner/management team due to financial and operational distress April 2024: Lender purchased the Property at foreclosure auction.

Asset History/Timeline:

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THE HOTEL

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HIGHLIGHTS

LOCATION

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Building Area:

113,484 SF

Laundry:

In-house

surface parking:

222 spaces (complimentary surface parking with 2 on-site EV charging stations)

MADISON EAST (DUAL-BRAND)

2403 EAST SPRINGS DRIVE | MADISON, WISCONSIN 53704

Tru by Hilton

Home2 Suites

Home 2 Suites

Tru by Hilton

Home 2 Suites

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Investment Highlights

The Offering

Privacy

DOCUMENT CENTER

Contact

DOCUMENT CENTER

UW Health East Madison Hospital

500,000 SF. 83-bed level IV trauma center. Will see renovations as part of the UW Health System’s $900 million expansion. UW Health Hospitals ranked #1 in Wisconsin (2024).

The American Center Business Park

447 acres. +90 companies. Notable tenants: American Family Insurance, UW Health, Enterprise Rent-A-Car, Alliant Energy, Wisconsin Bankers Association, Kapur & Associates. Offers a range of facilities and amenities designed to support businesses, including office spaces, conference facilities, and ample parking.

McAllen Truax Business Park

Consists of three buildings with additional land to develop. Adjacent to the Dane County Regional Airport. Notable tenants: Compound Photonics, Factory Motor Parts, Alfalight.

American Family Insurance

3,400 employees. Headquarters location. Serves 12 million customers.

Exact Sciences

6,500 employees. Headquarters location. $400 million in R&D investment. Molecular diagnostics company headquartered in Madison, Wisconsin that focuses on developing and providing tests for early cancer detection, treatment guidance, and personalized care.

Epic Systems

10,000 employees. 22-building headquarters campus. Develops, manufactures, licenses, supports, and sells a proprietary electronic medical record software application.

University of Wisconsin-Madison

939-acre campus. 52,100 students during fall 2024 semester. 24,400 employees. Among top 15 best public universities in the U.S. (U.S. News & World Report). Amidst a $262 million expansion.

East Towne Mall Indoor shopping mall. 840,000 SF. Anchor stores: JCPenney, Barnes & Noble, Planet Fitness, Flix Brewhouse.

East Towne Plaza 216,700 SF shopping plaza. Anchor tenants: Kohl’s, At Home, Burlington, and Marshalls. Notable restaurants: Potbelly, Five Guys, and MOD Pizza.

OIbrich Botanical Gardens 372,000 annual visitors. 16-acre outdoor botanical garden. 10,000 SF conservatory.

TPC Wisconsin Premier 154-acre, 18-hole championship golf course. Underwent +$25 million renovation in 2022. Will host PGA Tour American Family Insurance Championship in 2025.

Hartmeyer Ice Arena 3,500-seat multi-purpose arena. Two full-size ice rinks. Ice can be removed for indoor football.

Henry Vilas Zoo 28-acre public zoo. Receives over 830,000 visitors annually.

Dane County Farmer’s Market America’s largest producers-only farmers’ market. +220 vendors. Held from April to November on Saturday mornings.

Home2 Suites

Tru

Architect:

Designcell Architecture

Tru by Hilton

Exterior Photos

Photo Gallery

Home 2 Suites

Tru by Hilton

Home 2 Suites

Exterior Photos

Tru by Hilton

Home 2 Suites

Exterior Photos

Tru by Hilton

Home 2 suites

Home 2 Suites

Exterior photos

Tru by Hilton

Home 2 Suites

home 2 suites

Exterior Photos

Tru by Hilton

home 2 suites

Exterior photos

Photo Gallery

Ralph Depasquale

Broker of Record WI License#937317-91

CORPORATE

Michael Black

Real Estate Analyst312.845.8575michael.black@berkadia.comIL License #475211643