Client challenge:

A&D Investments needed a comprehensive feasibility analysis to evaluate the market, financial and operational viability of a proposed mixed-use family entertainment destination in McMinnville, Tennessee — a $13 million, 95,500-square-foot complex combining entertainment, dining, retail, weddings, concerts and tactical recreation alongside a proposed 30-room boutique bed and breakfast. Tennessee’s $29 billion tourism economy, Warren County visitor spending growth of 10.4% annually and a large five-hour drive market all pointed to opportunity — but the analysis was required to validate demand, quantify financial performance and support project positioning and decision-making.

Approach:

Feasibly conducted a market feasibility analysis paired with five-year operating projections covering:

• Local demographic and regional tourism trend analysis

• Review of competitive and comparable facilities across lodging, retail, restaurants and entertainment venues

• Assessment of wedding and event venue demand, concert venue positioning and tactical entertainment potential

• Hotel and boutique lodging market analysis for a proposed 30-room bed and breakfast

• Five-year operating projections including utilization, revenues, operating costs, NOI and cash flow

• Financial feasibility review including return on cost and debt service coverage

• Development scenario planning and investment feasibility assessment

Benefits to client:

The study identified the project as a strong opportunity driven by tourism demand, market gaps — including upscale destination-style lodging and immersive event experiences — and diversified revenue potential. Total development cost is $13 million, with stabilized NOI exceeding $2.1 million by Year 3, a return on cost of 16.3% and a debt service coverage ratio of 2.82x. Positive cash flow begins after debt service in Year 2, with cumulative cash flow exceeding $7 million. The development is positioned to become a regional destination, with success dependent on careful execution, strong tenant mix, targeted marketing and strategic regional partnerships.