Redevelopment Opportunity 6520 Thirlane Rd

Cushman & Wakefield | Thalhimer, as sole representative of the Owner, is pleased to present 6520 Thirlane Road, a redevelopment
opportunity for a former 120-key budget hotel in Roanoke, Virginia.
Situated on a 3.345 acre site with over 80 parking spaces and almost 300 feet of direct frontage on Peters Creek Road, one of
Roanoke’s primary connector arterials, the property is located 10 minutes from downtown Roanoke with direct connectivity to Interstate
581 and convenient access to key lifestyle amenities and area employers.
6520 Thirlane includes a total gross building area of 43,465 SF, including two 60-key buildings with two stories and 20,072 SF each.
Both buildings have been reroofed within the past five years. Additionally, there is a 3,331 SF office building on site. All public utilities
are available, and the property offers flexible potential for adaptive reuse or ground up redevelopment with a wide variety of uses
permitted by right. Due to restrictions, the Property cannot continue to operate as a budget hotel.
Roanoke is in period of rapid economic growth. From May 2020 through May 2023, 20,500 jobs were added, bringing regional
employment to 165,800, an all-time high. Within the North Roanoke County submarket, 6520 Thirlane stands to benefit tremendously
from the recently announced $87 million expansion of the existing Wells Fargo corporate facility, the region’s second largest employer,
which will add 1,100 additional jobs and is located less than 4 miles from the property.
The area is served by multiple economic growth engines including Carilion Clinic, which currently employs more than 13,200 and is the
MSA’s largest employer, as well as the Fralin Biomedical Research Institute at Virginia Tech Carilion and the Virginia Tech Carilion
School of Medicine, all of which are rapidly transforming the region “from trains to brains” and attracting thousands of top researchers,
physicians, faculty, students, and medical professionals. Thanks to the concerted efforts of community leaders at these public and
private institutions, more than $1 billion in capital has been invested in research and medical facilities and programs in Roanoke within
the last decade.
The strength and growth of the Roanoke economy has correlated with a steep increase in demand for rental housing in the
region. Annual rent growth for the overall market has averaged 4.19% since 2016 with stable, continued rent growth following a postpandemic surge of 12.00% in 2021. Stabilized occupancy remains above 95% as of Q3 2023, evidencing Roanoke’s resilience and
expanding rental demand throughout the region. Recently, the market has absorbed two major hotel redevelopment conversions,
including the View at Blue Ridge Commons with 338 luxury apartment units, which formally operated under the Sheraton flag, and now
fetches asking rents averaging $1.60 PSF for its spacious floor plans. More recently, the Heights at Gateway Park opened as a
conversion of a former Days Inn, offering 88 apartments with rental rates above $2.00 PSF, among the highest in the region.