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    300 Highway 7 SE Clara City, MN 56222

    Sponsored
    For Sale
    $469,000

    Commercial - Clara City, MN

    Property size:
    5,310 SF
    Lot size:
    1.06 Acres
    Days on Market:
    25
    Last Refresh:
    Feb 5 at 9:06 am

    Property Features for 300 Highway 7 SE

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Standard status
    Active
    Zoning
    Business/Commercial
    Rooms
    Bedroom 1, Bedroom 2, Bedroom 3, Bedroom 4
    Bedrooms
    4
    APN
    308073350
    Parking features
    Driveway, Paved or Surfaced
    Exterior features
    Block, Brick/Stone
    Appliances
    Microwave, Refrigerator
    Size
    5,310 SF
    Lot size
    1.06 Acres

    Utilities

    Heating system
    Forced Air, Other (Heating)
    Cooling system
    Central Air

    Building Details

    Year built
    1959
    Flooring type
    Linoleum, Vinyl
    Roof type
    Metal
    Architectural style
    Other

    We can help!

    Listing Contact
    Janell Welling
    Janell Welling

    Hughes Real Estate and Auction Service, LLC (320) 815-0460

    Listing agent Janell Welling (320) 815-0460

    Listing date Jan 12, 2026

    MLS# 7006149 Listing URL

    Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    Learn more

    Property Insight Report

    Overview

    Turn-Key Motel with Living Quarters

    This turn-key, newly updated 15-unit motel with private living quarters is situated on 1.06 acres along Highway 7 in Clara City, Minnesota, just east of the intersection of State Highways 7 and 23. The 5,310 sq ft motel has undergone over $200,000 in improvements within the last 5 years, including a new steel roof, new double-pane windows, a new front sidewalk, a new central furnace and AC, new PTAC HVAC units in each living unit, a new propane water heater system, upgraded electrical breaker and wiring, replacement and re-wiring of new security cameras, and the re-routing of sewer vents. A former 3-bedroom private living quarter was converted to a 2-bedroom private living quarter with a fully operated public laundry room that offers two coin-operated washers and two coin-operated dryers. The property also features upgraded 50" TVs in every unit and replacement of all LEDs in the commercial sign, plus ongoing general maintenance, painting, cleaning, lawn care, and snow removal. The private living quarter includes a kitchen, living room, two bedrooms, a full bath, and private laundry. The 14 additional units are fully furnished with private beds, 55" TVs, lounge chairs, private bathrooms, cable and high-speed Wi-Fi service, refrigerators, microwaves, bathroom towels and bedding, lamps, and nightstands. All inventory is included. The basement offers storage space and an egress window. The exterior is block and brick, with a fully tar-paved u-shaped driveway. The units are currently being rented out by the night. One of the units is handicapped accessible. There is also the option to make the units an "extended stay" type of rental property. The property is zoned for business and commercial use.
    Property Profile Insight Report Location Intelligence

    Current Use by Public Records

    Motels

    Suggested Use

    Restaurant Law Firm Building Supply Spa & Massage Center Big Box & Wholesale Store Hair Salon Auto Repair Shop Nail Salon Auto Parts Store Hotel & Motel

    Zoning and permitted uses should be independently verified with local authorities.

    Similar Places Nearby

    Turquoise Squirrel 27, Viking Inn

    Location Insight

    • Map
    • Local Demand
    City
    Clara City
    County
    Chippewa
    State
    Minnesota
    Longitude
    -95.368584
    Latitude
    44.949592

    Nearby Similar for Sale

    • $7,600,000
      220,000 SF

      Clara City Distribution Center

      220,000 SF Industrial Facility - MN
      223 1St Ave, Clara City, MN 56222
      View Details

    FAQs

    What type of property is this?
    Motel - Updated 15-unit motel with private living quarters on 1.06 acres.
    Where is this motel located?
    The property is located at 300 Highway 7 SE Clara City, MN.
    What is the asking price?
    The asking price for this property is $469,000.
    What are key features of this property?
    This property features: - Turn-key, newly updated 15-unit motel with private living quarters, offering immediate business operation and work-from-home potential.; - Significant recent improvements (over $200,000 in the last 5 years) including a new steel roof, double-pane windows, HVAC systems, and upgraded electrical and security systems.; - Fully furnished units with amenities such as private bathrooms, 55" TVs, refrigerators, microwaves, cable, and high-speed Wi-Fi, plus included inventory.
    (320) 226-5586
    Request Owner's contact information
    300 Highway 7 SE Clara City, MN 56222
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    Clara City, MN 56222
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    300 Highway 7 SE Clara City, MN 56222
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    We can help!
    Listing Contact
    Janell Welling
    Janell Welling
    (320) 226-5586
    Learn more
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