Hillcrest Motel

Nestled in the heart of Rochelle, IL, at 205 Powers Rd, this family-owned motel presents a unique investment opportunity. For over four decades, this property has been a staple of hospitality, offering both short-term accommodations and long-term tenancies.
Situated on a generous .89-acre lot, it features an expansive parking area and a serene, grassy space behind the building, ideal for guest relaxation or potential expansion.
The motel spans 3,684 square feet, with a total of 11 units divided into 5 single rooms, 5 double rooms, and a spacious 2-bedroom apartment, complete with a bathroom, living room, and kitchen. This apartment offers a perfect living solution for an onsite owner or manager, blending business with comfort. The facility also includes a small office area to facilitate smooth operations.
Financially, this property has consistently demonstrated solid performance, with normal annual income ranging from $60,000 to $70,000. This is supported by a blend of short-term room rates - $50 per night for a single room and $60 for a double, with weekly rates of $300 & $350 respectively, plus monthly rentals to long-term tenants. These tenants, five in total, contribute significantly to the motel's stability and income, with annual rent from regular tenants alone amounting to $53,160, before even considering motel rentals.
The property's expenses are well managed, with total costs in 2023 (including property taxes) amounting to $21,921, leading to an average annual profit between $40,000 and $50,000 for the owners. It boasts a new roof installed 12 years ago and well-maintained mechanical systems, ensuring that the next owners will inherit a property in good working order.
Located at 205 Powers Rd, Rochelle, IL 61068, this motel not only offers a solid financial foundation, but also potential for growth. Whether maintaining its current operation, enhancing its promotion and advertising, or converting it into studio/efficiency apartments, the possibilities are vast. This opportunity is particularly appealing for those looking to step into a well-established business with room for innovation and expansion.
The current owner, seeking retirement after years of dedication, has managed the property with minimal onsite presence, highlighting a significant opportunity for improvement for increased profitability with hands-on management.
This is an excellent chance for someone ready to take this longstanding establishment to new heights, building on its legacy and exploring new avenues for success:
The Option To Evolve Into A Boutique Hospitality Establishment: For those interested in maintaining the hospitality function of the site, transforming the property into a boutique hotel or bed & breakfast represents an exciting venture. This would involve an upscale renovation to modernize and personalize the guest experience. Such a project would be subject to adherence to residential zoning restrictions, ensuring that any hospitality use is permissible within the Special Use framework.
Potential For Apartment Conversion: One possible direction for this property, within the bounds of its zoning, is the conversion into studio or efficiency apartments. The existing structure, comprising 11 units with a mix of single, double rooms and a 2-bedroom apartment, lends itself to be transformed into residential apartments. This would cater to market demands for compact, affordable living spaces, appealing to individuals or small families. Of course, any redevelopment plan would need to respect local zoning and building codes, ensuring that any modifications enhance the property's value and utility within the community.
Or Convert To A Community-Oriented Project: The site's generous outdoor space and adaptable accommodation layout also offer potential for community living or co-housing developments. These projects focus on creating interconnected living spaces around shared amenities, promoting a sense of community and shared values. Any move towards this type of development would require careful consideration of zoning allowances and community impact.
Option To Transform To Educational or Non-Profit Use: Leveraging the property for educational or non-profit purposes could be explored, provided such use is compatible with the residential (Special Use) zoning. This could involve collaborations with educational institutions or non-profit organizations to create a space for learning, community engagement, or housing related to these activities.
Also The Potential For A Mixed-Use Development: Another consideration, pending local zoning approval, is a mixed-use development that combines residential and commercial elements. This approach would diversify the use of the property, potentially enhancing its contribution to the community and increasing its economic viability. The feasibility of this option would depend on a detailed understanding of the specific limitations and opportunities presented by the Special Use zoning designation.
Lastly A Redevelopment Opportunity: Offers a remarkable opportunity for investment or redevelopment within its current zoning designation as residential (Special Use). This unique categorization opens the door for a variety of uses, subject to compliance with local zoning ordinances and regulations. The expansive .89-acre site provides a versatile foundation for potential projects.
It's important for interested parties to engage with local zoning authorities and legal counsel to thoroughly understand the implications of the Special Use zoning designation and to ensure that any proposed redevelopment or use complies with local regulations. The property's existing infrastructure, combined with its strategic location and zoning classification, positions it as a highly versatile investment opportunity, ready to meet the needs and visions of its next owner, while enhancing the Rochelle community.
In summary, 205 Powers Rd offers a blend of tradition, potential, and financial stability, making it an attractive proposition for anyone looking to invest in the hospitality industry or explore the realm of property management and development!
Sponsoring Brokerage
Eatz Real Estate Group LLC
316 W. Northwest Hwy
Barrington IL 60010
Broker: Ted Aretos