Building Details

Year Built 2015

Listing Agency: Lake Country Resort Sales, Inc. Show Phone

Listed By: Timothy Aarsvold

Source: Bradadamrealty

Added: Aug 3 Changed: Aug 28 Last Checked: Aug 28 at 1:07PM

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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 Lake Country Resort Sales, Inc.

Investment Insights

Based on property information with market context.

Battle Lake Inn is a 5,312-square-foot motel property rebuilt in 2015 and updated for lodging operations. It includes 13 guest rooms with queen-bed configurations, including an ADA-compliant room, along with sofa sleepers, refrigerators, microwaves, air conditioning, internet, and cable TV. The rooms received updates in 2024, and the property has a porch with views of West Battle Lake.

The seasonal RV component provides 9 sites with full hookups and wireless internet. A lodge completed in 2017 adds a fish-cleaning station, bathroom, coin laundry, and gathering area. Additional improvements include a new parking lot, security system, IT system, and contactless check-in and check-out. The property is served by city water, sewer, and natural gas.

Located at 102 Glenhaven Dr in Battle Lake, the property is positioned off Highway 78, across from the Halverson Community Pier and near West Battle Lake’s public beach, boat launch, downtown businesses, and the Glendalough bike trail.

Key Highlights

• 13 motel rooms, including an ADA‑compliant room
• 9 seasonal RV sites with full hookups and wireless internet
• 5,312‑square‑foot property rebuilt in 2015

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

$41,182

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

3.29%

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%

$823,640 $823.6K

Cap Rate 7%

$588,314 $588.3K

Cap Rate 9%

$457,578 $457.6K

Market Conditions

NOI Build-Up for 5,312 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

$78.4K $14.76/SF

− Vacancy

−$3.5K −$0.66/SF

EGI

$74.9K $14.10/SF

− OpEx

−$33.7K −$6.34/SF

NOI

$41.2K $7.75/SF

Area

Otter Tail County, MN

Vacancy

4.50%

Lease Rate

$14.76 /SF/Yr

Expense Ratio

45.00%

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%

$823,640

Cap Rate 7%

$588,314

Cap Rate 9%

$457,578

Alternative Uses

Best Use

Apartment 5plus

$588.3K

$514.8K – $686.4K (±1% cap)

NOI $41,182 @ 7.0% cap · market cap 3.29%

Second Best

Hotel Hospitality

$305.2K

$267.0K – $356.0K (±1% cap)

NOI $21,361 @ 7.0% cap · market cap 1.71%

Theoretical Best

Office A

$1.15M

$1.01M – $1.35M (±1% cap)

NOI $80,776 @ 7.0% cap · market cap 6.46%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Battle Lake Inn Hotel & Motel

Suggested Use

Top Pick Building Supply Auto Repair Shop Dental Office Hair Salon Carpet & Flooring Store Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

54

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 56515, MN

2,967

Population

2,861

Households

1

Avg Household Size

59

Median Age

35%

College-Educated

97%

High-School Grad

96.1 sq mi

ZIP Area

31

Density / Sq Mi

$73,350

Median Household Income

$44,348

Median Earnings

$950

Median Rent

$371,100

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Motel - Rebuilt lodging property combines updated guest rooms, seasonal RV sites, and a separate lodge with guest amenities.

Where is this motel located?

The property is located at 102 Glenhaven Dr Battle Lake, MN.

What is the asking price?

The asking price for this property is $1,250,000.

What are key features of this property?

This property features: 13 motel rooms, including an ADA‑compliant room; 9 seasonal RV sites with full hookups and wireless internet; 5,312‑square‑foot property rebuilt in 2015