An independent Resort Feasibility Study evaluating a 60-unit hybrid boutique resort refinance in Dunsmuir, California.
DUNSMUIR, California — Wert-Berater, Inc., an independent feasibility study consulting firm serving lenders and government agencies since 1998, has completed a Resort Feasibility Study in Dunsmuir, California.
Wert-Berater served as independent feasibility consultant to the lender and CDC. Party names are withheld consistent with the confidential nature of underwriting and capital-advisory work; figures represent the project as evaluated at the study date.
Refinance of a repositioned hospitality asset transformed from a legacy 25-unit roadside motel into a 60-unit hybrid resort combining lodge rooms, rustic cabins, modern cabins, tiny homes, and Airstream-style accommodations, with approximately $7.0 million already deployed by ownership since 2022. Rather than relying on borrower-provided historicals, the study built a market-supported underwriting framework: differentiated ADRs of $176–$248 by unit type producing a blended stabilized ADR of approximately $217, occupancy ramping from 57.0 percent to a stabilized 64.5 percent, and stabilized revenue of approximately $3.19 million with NOI of $1,147,623 after a 2.0 percent reserve allowance — a 36.0 percent margin.
A mixed-format, experience-driven lodging platform positioned above traditional motels, competitive with boutique and short-term-rental supply, and below luxury resort pricing in a small, seasonal Northern California tourism market driven by Mount Shasta, river access, and outdoor recreation.
$4,990,438 bank first mortgage at 8.100% over 300 months; $4,436,000 SBA debenture at 5.725% — total refinance debt of $9,426,438 with annual debt service of $800,260.
The study's defining task was distinguishing stabilized supportability from ramp-period risk — and stating both without softening. Projected coverage of 0.96x in Year 1 and 1.17x in Year 2 falls below the 1.25x lender-comfort threshold, so the study quantified the required interim DSCR reserve at $295,827 ($235,666 Year 1; $60,161 Year 2) rather than adjusting assumptions to make the problem disappear. When SBA-related review requested a coverage case excluding the twelve Airstream units, the addendum recomputed the deal on a 48-unit basis — stabilized DSCR of 1.16x, below threshold through Year 6 — and concluded plainly that the no-Airstream case is not supportable on the original stabilized basis without additional structural credit support or reduced leverage. The determination was narrowed, not revised, under underwriting pressure.
Wert-Berater, Inc. is an independent feasibility study consulting firm founded in 1998, providing lender- and agency-facing feasibility studies, highest-and-best-use analyses, and capital-advisory support. The firm has completed 4,000+ engagements across all 50 states and internationally, evaluating over $41.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. In every engagement, fiduciary duty runs to the lender and the applicable agency.
Media contact: Donald Safranek, MSc, President, Wert-Berater, Inc. — +1 310-857-2443 ext. 800. Press inquiries only; client, lender, and property identities remain confidential.
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. 4,000+ engagements completed across all 50 states and internationally, evaluating $41.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
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Schedule a ConversationIndependent feasibility studies since 1998 — 4,000+ engagements, $41.2 billion in evaluated project value. Standard delivery in 10 to 15 business days. Fiduciary duty to the lender and agency.
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Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.