Building Details

Year built 1981

Listing Agency: Real Colorado Properties i***@realcoloradoproperties.com Show Phone

Listed By: Julie Piland · License #100044654 Show Phone

Added: Jul 7 Changed: Aug 19 Last Checked: Sep 11 at 6:06AM

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MLS# 835705

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Investment Insights

Based on property information with market context.

This 1.7-acre hospitality property includes a motel, restaurant, lounge, laundromat, and a newer apartment building with four rental units. The 3,216-square-foot commercial property was built in 1981 and combines overnight accommodations, food service, gathering space, laundry service, and residential rentals in one operating complex. Paved lane access serves guests, tenants, and customers, while mountain views complement the Western Colorado setting.

The property fronts Highway 65 in Mesa, a small mountain community along the route to the Grand Mesa. Powderhorn Mountain Resort, hunting areas, and public lands are located minutes away, supporting visitor activity across multiple seasons. Highway 65 also connects with nearby communities and the I-70 corridor, providing access toward Grand Junction for regional shopping, airport services, medical care, and business resources.

Key Highlights

• Motel, restaurant, lounge, laundromat, and apartment building with four rental units
• 1.7‑acre property with 3,216 square feet of commercial space
• Four‑unit apartment building adds residential rental capacity

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

$47,260

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

3.15%

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%

$945,200 $945.2K

Cap Rate 7%

$675,143 $675.1K

Cap Rate 9%

$525,111 $525.1K

Market Conditions

NOI Build-Up for 3,216 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

$68.3K $21.24/SF

− Vacancy

−$5.3K −$1.65/SF

EGI

$63.0K $19.59/SF

− OpEx

−$15.8K −$4.90/SF

NOI

$47.3K $14.70/SF

Area

Mesa County, CO

Vacancy

7.75%

Lease Rate

$21.24 /SF/Yr

Expense Ratio

25.00%

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%

$945,200

Cap Rate 7%

$675,143

Cap Rate 9%

$525,111

Alternative Uses

Best Use

Specialty Retail

$675.1K

$590.8K – $787.7K (±1% cap)

NOI $47,260 @ 7.0% cap · market cap 3.15%

Second Best

Multifamily LT 5

$456.9K

$399.8K – $533.1K (±1% cap)

NOI $31,985 @ 7.0% cap · market cap 2.13%

Theoretical Best

Healthcare Medical

$6.10M

$5.34M – $7.12M (±1% cap)

NOI $427,213 @ 7.0% cap · market cap 28.48%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

23

Businesses Nearby

Explore this area Business Placement

Demographics for 81643, CO

751

Population

639

Households

1.2

Avg Household Size

56

Median Age

36%

College-Educated

100%

High-School Grad

154.3 sq mi

ZIP Area

5

Density / Sq Mi

$125,469

Median Household Income

$59,201

Median Earnings

$581,900

Median Home Value

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?

Frequently Asked Questions

What type of property is this?

Motel - Multi-use hospitality property combines overnight lodging with restaurant, lounge, and laundry services.

Where is this motel located?

The property is located at 10900 Highway 65 Mesa, CO.

What is the asking price?

The asking price for this property is $1,500,000.

What are key features of this property?

This property features: Motel, restaurant, lounge, laundromat, and apartment building with four rental units; 1.7‑acre property with 3,216 square feet of commercial space; Four‑unit apartment building adds residential rental capacity