sale9440 N State Route 89a Sedona, AZ 86336

9440 N State Route 89a Sedona, AZ 86336

Property ID: 1, Commercial.
$6,500,000
15 sqft2001945

Property Description/Comments

Remarks: Consider The Butterfly Garden Inn and Market on one of the most magical water creeks in the United States. It is only 20 minutes from famous tourist destination Sedona, which receives close to 5 million tourists each year and a preferred destination for those going to the Grand Canyon. 

Formerly known as the Historic Don Hoel’s Cabins, which were built between 1923 and 1945, the Hoel family were pioneers to the Sedona area and brought electricity and one of the first lodging facilities to Oak Creek Canyon.  Nichole and Frank Garrison, the current owners/innkeepers, bought the property in 2012. Since then, they have been laboriously working to bring it back to life with much vision, inspiration, love and dedication.  For us locals, it has been an extraordinary revival of a wondrous property in Oak Creek Canyon and we have seen positive evolution each year.The property is a Historic Landmark and one of the last large privately owned parcels in all of Oak Creek Canyon with 27 acres of land and ¼ mile bordering the creek. The river flows all year round and it’s said to be one of the few Native American sacred water creeks in the United States. It is 20 minutes North of Sedona, on National Scenic Highway 89A to the Grand Canyon, and walking distance to West Fork, one of the premier hiking trails in Sedona. Other trails leave to the hills that back to the property, with magnificent views of the canyon.The Butterfly Garden Inn has 18 guest cabins, a convenience market and cafe, coffee bar espresso a lobby/sitting area, a kitchen and dining hall, a conference/event room, 4 employee cabins and owners home for a total of 15,000 square feet. The property has completely new underground electrics, two separate water wells and backup propane generator. It’s the only place this high up in the canyon (5,700 ft.) that offers Internet to its guests and neighbors. Although next to the creek, all buildings are out of the floodplain.

From a financial standpoint, the Butterfly Garden Inn is a great investment at $6.9 million. If you look at it from comparables sold in this area it is very well priced. P&L’s show an attractive financial picture. More than $2.2 million have been invested in infrastructure and updating, including all new underground electrics and sewer lines to treatment plant.

From a valuation standpoint, two consistent strong streams of revenue that have been growing and will continue to grow make it an extraordinary business opportunity:

1) Cabin Rentals: There are 18 cabins being rented now and 6 more (or 5 and new owner’s home) that are fully permitted and could be built right away. Lots of return customers from Phoenix and vicinity come here throughout the year, while tourists from out of state choose to come here to go to the Grand Canyon. Approximately 60% of the bookings are sourced from Trip Advisor, where the Inn has a great reputation.

2) Market Sales: The market currently offers basic convenience store supplies, espresso coffees, breakfast and lunch. It supplies its own guests as well as tour companies that stop to stock up with lunch boxes as they head north to the Grand Canyon. Campers from nearby campgrounds purchase supplies; homeowners in the area purchase supplies and eat there; by passers stop for coffee, snacks, drinks, breakfast or lunch.

Notably, this property has successfully made it without investing much in advertising and promotion. Go to the inn’s website to see how current owners describe and promote the lodge. http://www.thebutterflygardeninn.com/

In our opinion, a savvy marketer can further build this place as a desired destination because of its unique location, beautiful settings and proximity to Sedona, Oak Creek and the Grand Canyon. Lots of tourists choose to stay in Sedona when going to the Grand Canyon because although a little further away it offers so much more for tourists than closer destinations. During winter months many skiers from Phoenix, who would otherwise drive 3 hours (160 miles) one way to go to the Arizona Snowbowl (http://www.arizonasnowbowl.com), prefer to stay at this beautiful place that is just 40 minutes (or 43 miles) from the slopes. 

In summary, you can’t go wrong with this investment for these reasons:

(1) Extremely valuable land (26 acres) next to the creek. There are no more large parcels available and everything else is forestland;

(2) Proven cash flow from existing cabin rentals and market sales in gorgeous Sedona and close to Grand Canyon; and

(3) Clear path to increased profitability by building six new cabins, expanding to a full restaurant; expanding outreach and cabin rental price increase as demand permits.

Call or email Alejandro at 928-821-8552 for the complete Executive Summary and more detailed information.

Alejandro.gutierrez@russlyon.com

Please do not go to the property without an appointment. 

Features & Amenities

  • Floors: Concrete, Wood, Laminate

  • Construction: Frame – Wood, Log

  • County: Coconino

  • Internal Amenities: Other – See Remarks

  • Roof Materials: Rolled

  • Water Heater: Electric, Two or More, Propane

  • Commercial Amenities: Other – See Remarks

  • Cooling: Evaporative

  • External Amenities: Other – See Remarks

  • Heating: Individual Heat

  • Property Subtype: Commercial

  • Subdivision: 5 Acres or More

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