Aloft Waco (Marriott Flag)

115-Key Select-Service Hotel in Downtown Waco, TX

RAD Commercial Realty exclusively presents the opportunity to acquire Aloft Waco—a modern, five-year-old 115-key Marriott-flagged select-service hotel located in the heart of downtown Waco at 900 South 11th Street, Waco, TX 76706.

Offered at an asking price of $13,800,000 ($120,000/key), this asset represents an exceptional discount to regional sales comparables and replacement costs. Positioned near Baylor University and the Magnolia Market at the Silos, Aloft Waco benefits from Marriott's Bonvoy system, strong local demand drivers, and over $5.0B+ in regional capital infrastructure investments actively expanding the local economy.

• Call for Offers Deadline: August 25, 2026

• Asking Price: $13,800,000

• Price Per Key: $120,000 (~41% below market comp average)

• Adjusted NOI: $865,914 (Clear path to $1.08M+ post-optimization)

• Debt Yield / DSCR: 10.2% Senior Debt Yield / ~1.26x DSCR

Investment At-A-Glance & Performance Snapshot

Property Metrics & Valuation

Strategic Investment Highlights

1. Priced Well Below Replacement Cost & Regional Sales Comps

At $120,000 per key, Aloft Waco is priced significantly below the $250,000+/key required for ground-up construction of a comparable Marriott select-service asset today. Furthermore, the property trades at a 41.3% discount relative to local sales comparables:

                                  REGIONAL SALES COMPARABLES ($/KEY)
+-----------------------------------------------------------------------------------------+
¦ Courtyard by Marriott Waco ($238K/key)                                                 ¦
¦ Hotel Indigo Waco - Baylor ($225K/key)                                                 ¦
¦ Homewood Suites by Hilton Waco ($199K/key)                                             ¦
¦ SpringHill Suites by Marriott Waco ($182K/key)                                          ¦
¦ Tru by Hilton Waco ($178K/key)                                                          ¦
+-----------------------------------------------------------------------------------------¦
¦ regional comp average: $204K/key  |  SUBJECT ASSET (ALOFT WACO): $120K/KEY (-41.3%)    ¦
+-----------------------------------------------------------------------------------------+

2. Turnkey Marriott Asset — Aloft Gen 3.0 Standards

Built with Marriott’s Aloft Gen 3.0 standards, the asset carries zero deferred maintenance. New ownership inherits a turn-key platform fully integrated with Marriott Bonvoy (over 180M+ global members), corporate rate programs, and global distribution channels.

3. $5.0B+ McLennan County Capital Investment Pipeline

Waco is experiencing massive corporate expansion and infrastructure investment that directly fuels corporate and leisure lodging demand:

• Graphic Packaging International: $1.67B manufacturing facility.

• Electrolit USA: $400M plant.

• TxDOT My35 South Project: $250M highway expansion.

• Downtown Redevelopment: $2.8B multi-use project by Hunt Development.

• Institutional Drivers: Ongoing expansions across SpaceX McGregor and Baylor's Foster Pavilion.

4. ~25% Operational Upside & Value-Add Revenue Levers

An active hotel owner-operator can capture immediate margin upside by:

• Bringing ADR to market parity ($117.61 → $120.00+).

• Optimizing food & beverage operations and lounge profitability.

• Capitalizing on local demand surges driven by Baylor University home games and Magnolia Market events.

Conservative Financing & Capital Structure

The proposed capital stack offers strong sponsor equity protection while generating healthy debt yields:

                             RECOMMENDED CAPITAL STACK STRUCTURE
+-----------------------------------------------------------------------------------------+
¦ Senior Debt ($8.50M / 61.6% LTV)                                                        ¦
¦ C-PACE Financing ($3.50M / Clean Energy & Efficiency Cushion)                           ¦
¦ Sponsor Equity ($1.80M / High Yield Potential)                                          ¦
+-----------------------------------------------------------------------------------------+

• Senior Loan: $8,500,000 (61.6% LTV)

• C-PACE Allocation: $3,500,000

• Senior Debt Yield: 10.2% on Adjusted NOI ($865,914)

• Underwritten DSCR: ~1.26x on conventional terms (6.5% interest rate / 25-year amortization schedule)

Prime Downtown Waco Location & Major Demand Drivers

Situated at 900 South 11th Street, Aloft Waco commands a walkable, transit-oriented location adjacent to major highways, academic centers, and regional tourist destinations.

Local Demand Drivers & Key Distance Indicators

• Baylor University (0.8 miles): 20,000+ students; drives year-round visitation for athletics, graduation, and academic events.

• Magnolia Market at the Silos (0.5 miles): Draws millions of annual leisure tourists to downtown Waco.

• Waco Convention Center (1.0 miles): Core engine for regional corporate events and group bookings.

• Ascension Providence Hospital (2.0 miles) & Hillcrest (5.0 miles): Constant healthcare and medical staff demand.

High-Traffic Connectivity

• I-35 Frontage Road: 75,000 Average Annual Daily Traffic (AADT)

• N University Parks Drive: 25,000 Vehicles Per Day (VPD)

• Franklin Avenue: 18,000 VPD

Contact Exclusive Listing Agent

To execute the Non-Disclosure Agreement (NDA) and gain full access to the Virtual Data Room (VDR)—including historic STR reports, year-by-year financial statements, and C-PACE financing details—please contact:

Majid Radaei

Managing Broker — Principal

RAD Commercial Realty

• Direct Line: (818) 334-2111

• Email: majid@radcre.com

• Property Location: 900 South 11th Street, Waco, TX 76706