Occupied Mixed-Use
For Sale
Contact for pricing
1185 S STATE ST, Salt Lake City, UT 84111
The site has MU-5 zoning, State Street frontage, and occupancy by Good Spa, LLC and Uptown Motel.
Property Size5,837 SF
Price / SF$342.64
Days on Market13
Property Features for 1185 S STATE ST
General Information
Standard status
Active
Size
5,837 SF
Property subtype
Hospitality, Mixed Use
Zoning
MU-5
Investment Type
Redevelopment
Building Details
Year Built
1929
Stories
1
Tenancy
Multi
Listing Agency:
Newmark Mountain West
Listed By:
Josh Vance, CCIM · License #UT 5498417-SA00
Source:
Crexi
Added: Aug 18
Changed: Aug 30
Last Checked: Aug 30 at 7:18PM
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 Newmark Mountain West
Investment Insights
Based on property information with market context.
This mixed-use property comprises two parcels with two existing buildings, currently occupied by Good Spa, LLC and Uptown Motel. The property was built in 1929 and carries MU-5 zoning, supporting high-density, multi-story development with potential for street-level retail and upper-level multifamily uses.
Located on South State Street in Salt Lake City’s Liberty Wells Historic District, the site is near Downtown, benefits from freeway connectivity, and offers walkable access to the 1300 South TRAX Light Rail Station. The existing occupancy provides ongoing commercial use while future redevelopment planning takes place within an established infill corridor.
Located on South State Street in Salt Lake City’s Liberty Wells Historic District, the site is near Downtown, benefits from freeway connectivity, and offers walkable access to the 1300 South TRAX Light Rail Station. The existing occupancy provides ongoing commercial use while future redevelopment planning takes place within an established infill corridor.
Key Highlights
- Two parcels totaling approximately 0.37 acres (16,117 SF)
- Two existing buildings occupied by Good Spa, LLC and Uptown Motel
- MU‑5 zoning supports high‑density, multi‑story development
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
$80,551
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
4.03%
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%
$1,611,020
$1.6M
Cap Rate 7%
$1,150,729
$1.2M
Cap Rate 9%
$895,011
$895.0K
Market Conditions
NOI Build-Up for 5,837 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
$140.1K $24.00/SF
− Vacancy
−$11.2K −$1.92/SF
EGI
$128.9K $22.08/SF
− OpEx
−$48.3K −$8.28/SF
NOI
$80.6K $13.80/SF
Area
Salt Lake City, UT
Vacancy
8.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,611,020
Cap Rate 7%
$1,150,729
Cap Rate 9%
$895,011
Alternative Uses
Best Use
Mixed Use
$1.15M
$1.01M – $1.34M
NOI $80,551 @ 7.0% cap · market cap 4.03%
Second Best
Hotel Hospitality
$326.8K
$285.9K – $381.2K
NOI $22,874 @ 7.0% cap · market cap 1.14%
Theoretical Best
Office A
$1.57M
$1.38M – $1.83M
NOI $110,080 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,543
Businesses Nearby
Explore this area
Business Placement
Demographics for 84111, UT
12,162
Population
8,635
Households
1.4
Avg Household Size
34
Median Age
55%
College-Educated
95%
High-School Grad
1.4 sq mi
ZIP Area
8,687
Density / Sq Mi
$57,188
Median Household Income
$49,490
Median Earnings
$1,294
Median Rent
$423,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The site has MU-5 zoning, State Street frontage, and occupancy by Good Spa, LLC and Uptown Motel.
Where is this mixed-use property located?
The property is located at 1185 S STATE ST Salt Lake City, UT.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Two parcels totaling approximately 0.37 acres (16,117 SF); Two existing buildings occupied by Good Spa, LLC and Uptown Motel; MU‑5 zoning supports high‑density, multi‑story development
