Roadside America Auction - Anyone go?

Are they closing? I had no idea. !!!

According to what's been published, the auction was for surplus goods.
They are not closing (yet).
They are trying to find a buyer.

If I had the funds and was retired I would try to buy the establishment and keep it going, or re-design part and keep original parts, expand, whatever dreams may come my way. I was last there 20 years ago and it was amazing. I recall talking to one guy at the time - they actually have to replace track every so often as the rails get used so much - that made an impression on me. Train maintenance was also a regular job.

Considering the odd scale that Gehringer used to build it, I've always wondered if he had used Standard gauge trains when he started, and then switched to 0 gauge after WW2. 

Just an aside: I bet G gauge would've looked good on it too.

C W Burfle posted:

According to what's been published, the auction was for surplus goods.
They are not closing (yet).
They are trying to find a buyer.

Asking price is around $2.3 million.  I don't know the local real estate market, but I'm assuming that price must be intended to reflect the value of the land.  No sane person will pay anything close to that in order to continue operating Roadside America.

Mallard4468 posted:

C W Burfle posted:

According to what's been published, the auction was for surplus goods.
They are not closing (yet).
They are trying to find a buyer.

Asking price is around $2.3 million.  I don't know the local real estate market, but I'm assuming that price must be intended to reflect the value of the land.  No sane person will pay anything close to that in order to continue operating Roadside America.

The asking price is in line with standard business practice of 15 times the annual income. The family claims the business takes in approximately $195,000.00/year. ( Which is interesting since their only advertisement is flyers at the rest stops, their place along the highway and a billboard or two.- someone correct me if I'm wrong)

I live 5 minutes away from RA - never even knew they were having this auction of "surplus inventory" until I saw it mentioned after the fact this AM in the local fish wrapper. Supposedly they did not sell anything from the display itself, so based on my memory of the main building, they would have possibly sold off some standard gauge sets.

prrhorseshoecurve posted:

Mallard4468 posted:

C W Burfle posted:

According to what's been published, the auction was for surplus goods.
They are not closing (yet).
They are trying to find a buyer.

Asking price is around $2.3 million.  I don't know the local real estate market, but I'm assuming that price must be intended to reflect the value of the land.  No sane person will pay anything close to that in order to continue operating Roadside America.

The asking price is in line with standard business practice of 15 times the annual income. The family claims the business takes in approximately $195,000.00/year. ( Which is interesting since their only advertisement is flyers at the rest stops, their place along the highway and a billboard or two.- someone correct me if I'm wrong)

I stand by my original statement.  15 times NET income might make sense for a business with a bright future, but 15x gross sales for a dying business in a building that needs work is a ridiculously high multiple.  And if that figure is accurate, they wouldn't have needed to beg for $10k to fix the roof. 

Can't remember exactly what they charge, but when I was there a few years ago I think it was around $5-6.  So, adding a few bucks per person for merchandise sales, $195k equates to annual attendance of at least 30,000. 

I hope they find someone who can continue it, but that place is objectively worth the value of the real estate, and that's about it.  

I am not sure in what world 15 times revenue is standard for the sellers agent. Typically for small businesses 1 times revenue and maybe 3-5 times cash flow (profit) are normal multiples.  The value of any real estate with a business is valued at the appraised market value.   

So I think at some have pointed out to get 2.3m the land must be worth most of it.

Multipliers tend to be industry specific. I'd be more interested to know what their EBITDA (earnings before interest, taxes, depreciation, amortization) is, as in my experience, that's where you'd apply the multiplier.  And since RA is such a niche business, I think it's really hard to call that multiplier, but I agree that 3-5X is probably realistic. The property doesn't seem large enough or interesting enough to command 2.3M based on real estate value alone.

skantner posted:

Multipliers tend to be industry specific. I'd be more interested to know what their EBITDA (earnings before interest, taxes, depreciation, amortization) is, as in my experience, that's where you'd apply the multiplier.  And since RA is such a niche business, I think it's really hard to call that multiplier, but I agree that 3-5X is probably realistic. The property doesn't seem large enough or interesting enough to command 2.3M based on real estate value alone.

The owners are claiming 26 Acres of land so the property is more than just the building and parking lot.  IT probably includes the Duck pond in the back plus the Gift Hause and that closed Steamboat grill.

I said this once before and noone reacted... why don't they just sell all the OTHER land for about $1.9 million, and leave the building, layout, small parking lot, etc., as-is?  If they're not paying taxes on all that acreage, maybe the train display would break even.  And... with LionChief plus, why not let the visitors run the trains!?  My $.02, sorry to see a childhood icon in jeopardy!

now that would make too much sense

I said this once before and noone reacted... why don't they just sell all the OTHER land for about $1.9 million, and leave the building, layout, small parking lot, etc., as-is?  If they're not paying taxes on all that acreage, maybe the train display would break even.  And... with LionChief plus, why not let the visitors run the trains!?  My $.02, sorry to see a childhood icon in jeopardy!

Because they are tired of running it, and want to retire or do something else?

C W Burfle posted:

I said this once before and noone reacted... why don't they just sell all the OTHER land for about $1.9 million, and leave the building, layout, small parking lot, etc., as-is?  If they're not paying taxes on all that acreage, maybe the train display would break even.  And... with LionChief plus, why not let the visitors run the trains!?  My $.02, sorry to see a childhood icon in jeopardy!

Because they are tired of running it, and want to retire or do something else?

Maybe they mean instead of selling that parcel of land and making them move the layout, why not just leave it there and let somebody buy the land and layout as it stands.

Train Nut posted:

C W Burfle posted:

I said this once before and noone reacted... why don't they just sell all the OTHER land for about $1.9 million, and leave the building, layout, small parking lot, etc., as-is?  If they're not paying taxes on all that acreage, maybe the train display would break even.  And... with LionChief plus, why not let the visitors run the trains!?  My $.02, sorry to see a childhood icon in jeopardy!

Because they are tired of running it, and want to retire or do something else?

Maybe they mean instead of selling that parcel of land and making them move the layout, why not just leave it there and let somebody by the land and layout as it stands.

The problem is finding someone that would want to buy the business thinking it's a profitable one.  Remember that less than two years ago they were taking donations to repair their roof.  How profitable is the business if they can't afford standard maintenance?  

In three weeks' time no one, apparently, has responded to the OP's question on this toy trains forum in the affirmative (i.e., attending the auction).

Shartlesville, PA...73 miles from York.  Geographically within the purview of the Eastern Division of the TCA, mongo membership bastion.  Essentially part of the east coast Megalopolis.  Roadside America...the cranial burn of possibilities for toy train layouts for many of us, an inspiration for many a child.  And yet.....

Apparently more advice than attendance. 

Of course, that's just MHO....

KD

(600+ miles each way was a bit far for this septuagenarian's attendance of the auction.  But I'll NEVER forget the childhood memories/impact RsA had on my life-long participation in this great hobby!)

KD - "In three weeks' time no one, apparently, has responded to the OP's question on this toy trains forum in the affirmative (i.e., attending the auction)."

Thanks for recognizing the original post and question. . .!

No, I did not attend the auction. It was too far away. I might have been willing to drive an hour. Not four hours.

Since nobody has posted about their experience attending, I'd guess no one else went either.

Roadside America is located in a prime off highway location close to an exit. It has easy access to Rt 78. As such it is valuable commercial PA real estate.  What would make sense is to subdivide the property, sell off all but a couple of acres where the Roadside America building is and preserve it as a historic landmark. I would also add a custard or soft ice cream stand next door and approach the state to seek official historic landmark status.  Would the owners really just scrap this historic layout?

What kind of shape is the layout in ??  Track?  wiring ? engines ?? Plus the building. Not too sure I would want to dump over $2 million in an old train layout.

jim pastorius posted:

What kind of shape is the layout in ??  Track?  wiring ? engines ?? Plus the building. Not too sure I would want to dump over $2 million in an old train layout.

The layout is in various states of disrepair. I spoke to one of the ee's there that was working on the incline.

• The AC was inoperative so TWO small Floor fans were being used to keep the place cool.
• They still use a lot of light bulbs which generates a LOT of heat instead of slowly switching to LED's!
• The Victor Theatre Marque is 1/2 out 
• Many buttons that used to line the display were dismantled
• The Circus Parade [A big Turntable] was inoperative

• The "River" at the rear of the display was malfunctioning so the "Riverbed" was bone dry
• The Methodist Church at the rear of the layout bells would not ring when one hits the button

• NO "fireworks display" when doing the Nighttime/God Bless America Tribute

The grist mill was not spinning it's waterwheel and three older and replaced waterwheels hung around the structure sides [couldn't be "picked up and put in a display case?]

And Good or bad [depending on your preference]- NOT many trains displayed [packed] on the dead sidings that was seen back at the "turn of the century". I remember many brass Samhongsa-Williams and Vinatge Lionel postwar on display tracks that filled many open areas by the operating tracks. 

All track is Gargraves that form crudely bent loops. NO Switches to minimize derails. NO ballast to get "sucked up" in the locomotive gears.

Overall I am glad to see it "one last time" before something happens and it's GONE.

CBS Sunday morning show did a real good segment on R A today

.  Worth a look for the memories and the rationale of selling it all.

My coworker told me about this yesterday. So many memories there. Hopefully someone will be able to save it from disappearing, such a good place. So many train dreams filled my childhood after I visited there so long ago.