A Premier Extended Stay Hotel Investment Offering by Genesis Realty & Development
in Missouri's Fastest-Growing Region.
Everhome St. Peter's, MO Offering
Why Economy & Upper Mid-Scale Extended Stay?
Economy and middle-scale extended stay hotels, function equally as residential and short-term housing as they do hospitality. The mandate for product to bridge the gap between the housing demand and housing supply, has little end in sight
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The U.S. faces a critical shortage of affordable housing, driven by rising home prices, increasing rents, and limited new housing developments in urban and suburban areas. This has left millions struggling to find stable, long-term housing. Factors such as slow wage growth, restrictive zoning laws, and a lack of affordable housing units exacerbate this issue. For middle-income families, securing homes that fit their budgets is increasingly challenging. This has created a growing demand for alternative housing solutions that serve individuals and families in transition
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As the gap between housing demand and supply widens, extended-stay hotels are emerging as a viable alternative to conventional housing. With high occupancy rates and a growing appeal for flexible, short-term living arrangements, these hotels cater to shifting lifestyles. The rise of remote work, relocations, and economic uncertainties has further fueled the demand for these accommodations. Extended-stay hotels offer a practical solution for individuals seeking flexibility over long-term rental commitments.
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Mid-scale and economy extended-stay hotels provide a cost-effective solution to the housing gap. By offering affordable and convenient options for displaced individuals, remote workers, and those seeking temporary accommodation, they fill a vital need in the market. Amenities like kitchenettes, on-site laundry, and extended living features allow guests to maintain a comfortable lifestyle without the burden of traditional lease agreements. The affordability and flexibility of these hotels make them an attractive option for millions navigating housing challenges
Investment Highlights
Everhome Suites – St. Peters is an extended stay hotel project located in the thriving community of St. Charles County, Missouri. Positioned along I-70, the property benefits from exceptional visibility with over 36,000 vehicles per day and access to major metro areas like St. Louis. This 115-room property fills a critical gap in the market, being the only mid-scale extended stay hotel within a 10-mile radius
Disclaimer
The contents of this information constitutes neither an offer to sell nor a solicitation of an offer to buy any Genesis Realty and Development’s sponsored investment programs; an offering is made only by prospectus. Information about an investment program must be preceded or accompanied by a prospectus in order to understand fully all the implications and risks of the offering. Neither the SEC nor any State regulators have passed on or endorsed the merits of Genesis Realty & Development offerings. Any representation to the contrary is unlawful. The information contained herein is confidential and proprietary and to be used by the intended recipient for the purpose of evaluating the proposed business opportunity presented. It may not be duplicated, reproduced or distributed to unauthorized parties. It is intended strictly for discussion purposes and not intended to create any obligations or commitments. Additional information and an opportunity to conduct satisfactory due diligence is available to qualified interested parties upon request. No representations or warranties expressed or implied are made regarding the accuracy and completeness of any data or information contained herein.
The securities referenced in this presentation have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any states or other jurisdictions and are being offered and sold in reliance on exemptions from the registration requirements of said act and such laws. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under said act and such laws pursuant to registration or exemption therefrom and in accordance with the provisions of the limited partnership agreement. These securities have not been approved or disapproved by the securities and exchange commission, any state securities commission or any other regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of this offering or the accuracy or adequacy of this memorandum. Any representation to the contrary is unlawful.
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Extended-Stay Rooms Are Underrepresented in the Upper-Midscale Segment
Supply Imbalance: Extended-stay rooms are significantly underrepresented in the upper-midscale chain scale, comprising only 15% of the total supply and pipeline in this segment, compared to 85% transient properties.
Market Opportunity: With the upper-midscale segment being the largest by total supply (1.405 rooms), the limited presence of extended-stay rooms presents a substantial opportunity for growth and market capture.
Comparative Insight: While midscale and upscale segments show better representation of extended-stay supply (29% and 28%, respectively), the upper-midscale chain scale remains underserved, making it an ideal target for new developments
Our Strategic Role: Genesis Companies is actively bridging the gap in affordable housing by expanding its portfolio of extended-stay properties. By converting existing structures and developing new hotels, Genesis is addressing the growing demand for flexible, short-term housing options. This evolving model not only provides reliable solutions for individuals and families but also aligns with the company’s mission to meet market demands while generating strong returns for investors
THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT
Investment Highlights
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Sources of Funds
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Investor Equity: $3.98M (22% of total; 90% of equity).
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Genesis Equity: $442K (2% of total; 10% of equity).
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Franchise Incentives: $1M (6%).
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PACE Funding: $3.61M (20%).
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Construction Loan: $9.03M (50%).
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Uses of Funds
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Land: $1.1M.
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Construction Costs: $12.42M.
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Furniture, Fixtures, and Equipment (FFE): $1.17M.
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Soft Costs: $2.27M.
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PACE Interest Reserve: $531K.
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Other Costs: $310K.
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Key Highlights:
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Total Project Cost: $18.08M.
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Equity Split: Investor Equity (90%) vs. GP Equity (10%).
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Brand Incentives: Reduces total equity by $1M
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Market Overview
Strategic Location: St. Peters, Missouri, is a rapidly growing community in St. Charles County, one of Missouri's fastest-expanding regions, situated less than 30 miles from downtown St. Louis
High Traffic Visibility: The hotel site is positioned along I-70, a major transportation corridor with 36,000 vehicles traveling daily between Kansas City and St. Louis, and over 100,000 vehicles heading toward each metro area
Unique Market Opportunity: There are no other mid-scale extended-stay hotel franchises within a 10-mile radius, presenting a prime opportunity to meet the demand for extended-stay accommodation in the area.
About Genesis Realty & Development
Genesis Realty and Development (GRD) is a premier hospitality developer with a proven track record in the industry. Over the past four years, GRD has strategically focused on the extended-stay sector, successfully sponsoring and launching multiple projects that have set a benchmark in the industry. Known for its meticulous approach, GRD conducts thorough market studies and in-depth due diligence to ensure the success of every project. Its sophisticated development process, coupled with a commitment to excellence, has solidified its reputation as a trusted name in hospitality investment.
As a testament to its dedication and expertise, GRD was named Choice Hotel's Development Partner of the Year in 2023. With a pipeline of innovative projects and a strong focus on delivering value to stakeholders, GRD continues to lead the way in the extended-stay hospitality market. Here is a summary of GRD’s active and upcoming extended-stay projects:
Philip Goforth, is President of Genesis Companies and has over 17 years of commercial real estate experience. Genesis is an asset management, development, and construction firm providing various services to the commercial real estate and construction industries. Philip and his firm have worked hand in hand with various developers, co-investors, and partners on a multitude of real estate assets. A high concentration of Philip’s experience is in the hospitality industry, having played a role in over two dozen hotel developments. Philip has been involved with the following hotel brands, Hilton, Marriot, Choice, IHG, Starwood, LaQuinta, and Best Western.
Philip and his family have been in the development, management, and construction fields for many years. Philip has developed operating systems to maintain control over development schedules, budgets, and overall quality of properties. He is able to serve his clients from the project feasibility phase to monitoring of every dollar that passes through the project. Philip has been involved at various levels of development and construction for hotels, shopping centers, and apartment developments, including the repositioning of multifamily properties. In addition to Philip’s development and construction experience, he also was the co-owner of a boutique financial service business focused on real estate private placement investments.
Philip received a degree in Economics and Finance from Kansas State University. He has taken additional financing and real estate classes after graduation. Philip’s memberships include Institute of Management Accountants (IMA), International Council of Shopping Centers and St. James’s Apostle Parish. Philip resides in Kansas City with his wife Amy and their two children, Grant and Gracie.
Omid Shahbazian is a principal and driving force behind Genesis Companies, where he serves as Executive Vice President and Chief Operating Officer. With over 25 years of experience in real estate development and construction management, Omid brings an exceptional blend of technical expertise and visionary leadership to the organization. His multifaceted background includes managing projects across diverse sectors, from high-rise concrete structures internationally to large-scale mixed-use developments and hospitality projects in the U.S.
At Genesis, Omid is responsible for overseeing the direction and execution of high-value commercial and residential projects. He excels in aligning strategic planning with operational excellence, ensuring every project reflects Genesis' commitment to quality and long-term value. His meticulous focus on quality control, value engineering, and timely delivery has consistently set new benchmarks in the commercial construction industry.
Omid’s owner’s perspective sets him apart, enabling him to lead with a focus on cost optimization, risk mitigation, and client satisfaction. He has been instrumental in shaping Genesis' reputation as a trusted partner in real estate development, with an emphasis on building lasting relationships and creating meaningful impacts in every community they serve.
A recognized expert in construction management systems, Omid has implemented cutting-edge technologies to streamline processes, improve efficiency, and enhance project outcomes. His innovative approach ensures Genesis Companies remains at the forefront of the industry, driving excellence in every project.
Omid holds a Bachelor’s degree in Civil Engineering and a Master’s degree in Construction Engineering & Management from the University of Kansas, combining a strong technical foundation with advanced managerial expertise. His dedication to excellence, innovation, and strategic vision continues to elevate Genesis Companies' impact and influence in the development and construction sectors.
Todd Kobayashi, oversees all financial activities at Genesis Companies and is the parent company’s Chief Financial Officer (CFO). He has more than 15 years of experience financing and developing various real estate asset types. Todd brings extensive asset management experience to Genesis. He is well suited to manage our corporate cash flow between connected business units while helping to optimize their profitability. Moreover, Todd is the ideal professional for watching our investors’ capital and ensuring it grows as intended.
Beginning in 2013, Todd served as CFO at Foutch Architecture & Development in Kansas City, a leading firm in the country in the redevelopment of historic buildings. As CFO, his areas of responsibility included Finance, Accounting, Tax, Insurance, Risk Management and IT functions. He has led strategic planning and been instrumental in shaping opportunities in the student housing and senior living arenas.
Prior to his tenure at Foutch, Todd served in several vice president roles at Great Plains Energy/KCP&L for nine years.
He graduated Cum Laude from Miami University in Oxford, OH with a Bachelor of Science in Business degree. He also attended the Harvard Business School in Cambridge, MA, graduating from the Advanced Management Program, and holds the Chartered Financial Analyst (CFA) designation. Todd resides in Parkville, MO with his wife and four children.
Joe Neuerburg, as direct of capital markets, brings over 25 years of experience in the commercial real estate industry, building and maintaining strong relationships across the nation. Throughout his career, Joe has been instrumental in overseeing the underwriting and origination of more than $1 billion in loans for a wide range of real estate projects. These have included land acquisitions, development, construction, bridge, mini-perm, and permanent financing. His ability to structure complex financial solutions has made him a trusted partner for developers, investors, and lenders alike.
Joe’s expertise spans a diverse portfolio of real estate asset classes, including residential, multifamily, assisted living/memory care, office, retail, industrial, self-storage, and hospitality properties. Within the hotel industry, Joe has played a pivotal role in securing financing for extended-stay and full-service hospitality projects, helping developers bring their visions to life.
Beyond debt origination, Joe has successfully raised significant investor capital for numerous real estate developments, demonstrating his deep understanding of both equity and debt markets. His extensive network of institutional and private investors, combined with his comprehensive market knowledge, enables him to deliver tailored financial strategies that maximize returns and mitigate risks.
A seasoned professional, Joe is known for his strategic thinking, attention to detail, and commitment to fostering long-term relationships. His experience navigating market cycles has equipped him with the ability to anticipate challenges and adapt strategies to changing economic conditions, ensuring project success even in complex market environments.
Five Years’ Pro forma
Detailed Financial Metrics
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Occupancy and ADR Growth: Projections start with an occupancy rate of 67% in 2026, growing to 76% by 2030, with ADR increasing accordingly.
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Revenue Growth: Departmental revenue exceeds $3.6M annually by 2030, supported by steady RevPAR growth.
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Operating Profit: Gross operating profit (GOP) shows consistent growth, surpassing $2.7M by 2030.
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EBITDA Resilience: Projected EBITDA exceeds $1.6M in 2026, growing to over $2.7M by 2030.
Key Highlights
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Market-Based Metrics: Projections are built on realistic occupancy rates and average daily rates (ADR), reflecting market trends and demand.
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Expense Management: Operating expenses are consistent with comparable properties, ensuring efficiency across all departments.
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PACE Fee Structure: PACE fees are structured as an annual payment, aligning with cash flow planning.
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Strong Debt Service: Includes coverage for both mortgage and PACE obligations, emphasizing financial stability.
With strong revenue performance, disciplined cost management, and a robust debt service strategy, Everhome Suites St. Peters delivers a dependable financial outlook for its stakeholders. These metrics demonstrate the property’s ability to generate reliable cash flow and achieve long-term value creation.
Projected Returns
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Strong Projected Performance with Attractive Returns
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Strong Cash on Cash Return: The project delivers robust yearly cash-on-cash returns, starting at 19.29% in year 1, with continued growth in subsequent years (10.56% by year 3).
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10% Preferred Return: Investors benefit from a 10% preferred return on their investment, ensuring priority distribution before profit sharing.
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Exit Cap Rate Assumption: The exit cap rate is conservatively set at 8.00%, with strong market-based assumptions supporting this figure.
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High Project IRR: The projected Internal Rate of Return (IRR) for the project is 24%, demonstrating strong profitability and upside potential.
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Investor Equity IRR: Investors can expect a 20% return on equity, reflecting the project's high yield and investor-friendly structure.
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Equity Multiple: With a projected multiple of 1.6x, investors can expect to more than double their investment over the holding period.
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Stabilized Yield on Cost: The project is expected to stabilize at an attractive 9.2% yield on cost by the end of year 3.
Sale Assumptions
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Projected Sale Price: $19,004,323 at an 8.00% cap rate.
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Net Sale Proceeds: After accounting for transaction fees, PACE obligations, and mortgage debt, the net sale proceeds are estimated at $6,142,133.
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This strong financial outlook is based on conservative assumptions, ensuring a stable and profitable investment for stakeholders. The combination of high cash-on-cash return, strong IRR, and a solid exit strategy offers a compelling opportunity for investors seeking solid, long-term returns.
Project Budget Overview
The total project cost for Everhome Suites St. Peters is estimated at $18,07 8,645, Key details include:
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Hard Costs: $13.6M, with a cost per room of $105,650.
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Soft Costs: $2.27M.
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Financing Costs: $1.1M.
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Accelerated Depreciation Rates: Up to 100% bonus depreciation for qualified improvement property (QIP) placed in service before 2023, with phased reductions through 2026. The project also takes advantage of significant bonus depreciation benefits under the Tax Cuts and Jobs Act of 2017 (TCJA), extended through 2026.
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Cost Segregation Advantage: Enabled depreciation of ~$3.2M in the first year of service, significantly reducing taxable income and boosting early returns.
