Listing Agency: Westlake Associates, Inc. Show Phone

Listed By: River Voorhees Show Phone

Source: Moodyscre

Added: Nov 24, 2025 Changed: Aug 9 Last Checked: Aug 23 at 12:03PM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Westlake Associates, Inc.

Investment Insights

Based on property information with market context.

The property for sale features the Dutch Cup Motel, along with three single family houses, a 4-plex, and three operational mobile home pads. The entire complex is situated on a 2.39 acre lot in Downtown Sultan, presenting redevelopment potential. Originally constructed in 1970, the Dutch Cup is a 22-key motel with frontage on Main Street and visibility from Highway 2. Behind the Dutch Cup is approximately 2 acres of flat land zoned for high density residential development. This additional land includes the single family rentals, the 4-plex building, and the mobile home pads, all of which provide income. This opportunity allows an investor to maximize operations of the Motel, as it is the only motel in Sultan, WA. The current ownership group self manages and have operated the motel for many years. The property offers the potential to redevelop the 2 acres of land in the back to build either multifamily housing or single family homes. Utilities are already on site.

Key Highlights

• High‑density residential zoning on 2 acres allows for exceptional redevelopment potential.
• Income‑generating property with a 22‑key motel, three single‑family rentals, a 4‑plex, and three mobile home pads.
• The Dutch Cup Motel is the only motel in Sultan, WA, offering a unique business opportunity.

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

$211,840

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

6.62%

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%

$4,236,800 $4.2M

Cap Rate 7%

$3,026,286 $3.0M

Cap Rate 9%

$2,353,778 $2.4M

Market Conditions

NOI Build-Up for 12,708 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

$320.2K $25.20/SF

− Vacancy

−$17.6K −$1.39/SF

EGI

$302.6K $23.81/SF

− OpEx

−$90.8K −$7.14/SF

NOI

$211.8K $16.67/SF

Area

Snohomish County, WA

Vacancy

5.50%

Lease Rate

$25.20 /SF/Yr

Expense Ratio

30.00%

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%

$4,236,800

Cap Rate 7%

$3,026,286

Cap Rate 9%

$2,353,778

Alternative Uses

Best Use

Multifamily LT 5

$3.03M

$2.65M – $3.53M (±1% cap)

NOI $211,840 @ 7.0% cap · market cap 6.62%

Second Best

Apartment 5plus

$2.72M

$2.38M – $3.17M (±1% cap)

NOI $190,077 @ 7.0% cap · market cap 5.94%

Theoretical Best

Office A

$3.54M

$3.10M – $4.13M (±1% cap)

NOI $248,083 @ 7.0% cap · market cap 7.75%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Motels

Location Intelligence

Trade Area within ½ mile

239

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this motels located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• Dutch Cup Motel — 101 Dutch Cup Ln, Sultan, WA 98294

Frequently Asked Questions

What type of property is this?

Motel - 2.39 acre lot with motel, homes, and redevelopment potential.

Where is this motel located?

The property is located at 101 Dutch Cup Ln Sultan, WA.

What is the asking price?

The asking price for this property is $3,200,000.

What are key features of this property?

This property features: High‑density residential zoning on 2 acres allows for exceptional redevelopment potential.; Income‑generating property with a 22‑key motel, three single‑family rentals, a 4‑plex, and three mobile home pads.; The Dutch Cup Motel is the only motel in Sultan, WA, offering a unique business opportunity.