Lakeside Motel with Lakefront
For Sale
$425,000
27672 US 41 Highway, Michigamme, MI 49861
COMMERCIAL - Michigamme, MI
Property Size4,658 SF
Lot Size1.38 Acres
Price / SF$91.24
Days on Market271
Property Features for 27672 US 41 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Bedrooms
10
Bathrooms
10
Full bathrooms
10
Rooms
Bedroom 7, Bedroom 8, Bedroom 1, Bedroom 5, Bedroom 6, Bathroom 5, Bathroom 8, Bedroom 3, Bedroom 9, Bathroom 4, Bedroom 2, Bedroom 4, Bathroom 6, Bathroom 10, Bathroom 9, Bathroom 7, Bedroom 10, Bathroom 3, Bathroom 1, Bathroom 2
High school district
000000
Standard status
Active
Size
4,658 SF
Lot size
1.38 Acres
Amenities
private dock
pine finishes
remodeled baths
LED televisions
multiple refrigerators
air-conditioning units
quality bedding
Listing Agency:
Great Lakes & Land Real Estate
(906) 228-9312
Listed By:
Timothy Keohane
(906) 228-9312
Added: Nov 14, 2025
Changed: Aug 12
Last Checked: Aug 12 at 10:06AM
MLS# 11628058
Copyright © 2026 My State MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Set among the sparkling waters and forested beauty of Michigan’s Upper Peninsula, this lakeside motel and resort property overlooks 350 feet of scenic frontage between Ruth Lake and George Lake in Spurr Township’s Three Lakes Region. The Bear’s Paw is a well-established 10-bedroom, 10-bath resort and motel built for vacationers, hunters, and travelers.
The lodge offers more than 3,100 square feet of interior space with comfortable guest suites and recent updates throughout, including remodeled baths, LED televisions, multiple refrigerators, air-conditioning units, and quality bedding. A private dock and four outbuildings provide additional space for storage and recreation.
Also included is a spacious two-bedroom, two-bath manager’s residence with a full kitchen, dining room, and office space. The property sits on 1.38 acres and offers on-site infrastructure suited to an owner-operator or staffed operation aligned with lakefront downtime and outdoor activities.
The lodge offers more than 3,100 square feet of interior space with comfortable guest suites and recent updates throughout, including remodeled baths, LED televisions, multiple refrigerators, air-conditioning units, and quality bedding. A private dock and four outbuildings provide additional space for storage and recreation.
Also included is a spacious two-bedroom, two-bath manager’s residence with a full kitchen, dining room, and office space. The property sits on 1.38 acres and offers on-site infrastructure suited to an owner-operator or staffed operation aligned with lakefront downtime and outdoor activities.
Key Highlights
- Overlooks 350 feet of frontage between Ruth Lake and George Lake
- The Bear’s Paw: 10‑bedroom, 10‑bath resort and motel
- More than 3,100 square feet in the lodge with recent updates
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$24,891
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.86%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$497,820
$497.8K
Cap Rate 7%
$355,586
$355.6K
Cap Rate 9%
$276,567
$276.6K
Market Conditions
NOI Build-Up for 4,658 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$69.9K $15.00/SF
− Vacancy
−$17.5K −$3.75/SF
EGI
$52.4K $11.25/SF
− OpEx
−$27.5K −$5.91/SF
NOI
$24.9K $5.34/SF
Area
Marquette County, MI
Vacancy
25.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$497,820
Cap Rate 7%
$355,586
Cap Rate 9%
$276,567
Alternative Uses
Best Use
Hotel Hospitality
$355.6K
$311.1K – $414.9K
NOI $24,891 @ 7.0% cap · market cap 5.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.37M
$1.20M – $1.60M
NOI $96,029 @ 7.0% cap · market cap 22.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49861, MI
565
Population
634
Households
0.9
Avg Household Size
60
Median Age
30%
College-Educated
96%
High-School Grad
183.9 sq mi
ZIP Area
3
Density / Sq Mi
$66,806
Median Household Income
$38,542
Median Earnings
$229,200
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Bear Paw Inn — 27672 US-41, Michigamme, MI 49861
- Three Lakes Motel — 27837 US-41, Michigamme, MI 49861
- Ruth Lake Resort Upper Michigan — 27757 US-41, Michigamme, MI 49861
- Lake Ruth Resort Motel & Cabins — 27757 US-41, Michigamme, MI 49861
Frequently Asked Questions
What type of property is this?
Motel - Lakeside resort and motel property with a private dock and lake frontage between Ruth Lake and George Lake.
Where is this motel located?
The property is located at 27672 US 41 Highway Michigamme, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Overlooks 350 feet of frontage between Ruth Lake and George Lake; The Bear’s Paw: 10‑bedroom, 10‑bath resort and motel; More than 3,100 square feet in the lodge with recent updates
