Gearhart Motel on Hwy
For Sale
$2,000,000
4253 Hwy 101 N, Gearhart, OR 97138
Motel with 25 units on 5.49 acres near beach.
Property Size15,939 SF
Lot Size5.49 Acres
Price / SF$125.48
Days on Market609
Property Features for 4253 Hwy 101 N
General Information
Standard status
Active
Size
15,939 SF
Lot size
5.49 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$16,310
Amenities
Flat Roof
Membrane Roof
On Site
Building Details
Year Built
1985
Listing Agency:
RE/MAX EQUITY GROUP
(503) 626-4600
Listed By:
MONA KELLY · License #200108115
Source:
Corcoran
Added: Dec 11, 2024
Changed: Aug 8
Last Checked: Aug 8 at 1:56PM
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 RE/MAX EQUITY GROUP
Investment Insights
Based on property information with market context.
This property, operating as a motel, features 217 square feet of frontage on Highway 101 in Gearhart, Oregon. Situated on 5.49 acres across two tax lots, the property includes a 3,623-square-foot storage building and 77 parking spaces. It is located approximately half a mile from the beach. Zoned C2 for Commercial/Residential use, the property offers 25 units available for nightly, weekly, bi-weekly, or monthly rental. These include five 2-bedroom units and twenty 1-bedroom units, all equipped with kitchenettes and featuring a Mid-Century Modern decor. An on-site coin-operated laundry is also available. The property's zoning allows for commercial and residential uses.
Key Highlights
- Prime Hwy 101 frontage (217sf) in Gearhart, OR, offering excellent exposure.
- 5.49 acres of land zoned C2 for Commercial/Residential use, providing versatile development opportunities.
- Operating motel with 25 rental units (5 two‑bedroom, 20 one‑bedroom with kitchenettes) generating income.
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
$96,531
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
4.83%
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%
$1,930,620
$1.9M
Cap Rate 7%
$1,379,014
$1.4M
Cap Rate 9%
$1,072,567
$1.1M
Market Conditions
NOI Build-Up for 15,939 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
$239.1K $15.00/SF
− Vacancy
−$35.9K −$2.25/SF
EGI
$203.2K $12.75/SF
− OpEx
−$106.7K −$6.69/SF
NOI
$96.5K $6.06/SF
Area
Clatsop County, OR
Vacancy
15.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
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%
$1,930,620
Cap Rate 7%
$1,379,014
Cap Rate 9%
$1,072,567
Alternative Uses
Best Use
Hotel Hospitality
$1.38M
$1.21M – $1.61M
NOI $96,531 @ 7.0% cap · market cap 4.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.63M
$4.05M – $5.41M
NOI $324,391 @ 7.0% cap · market cap 16.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
143
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97138, OR
11,248
Population
7,785
Households
1.4
Avg Household Size
48
Median Age
28%
College-Educated
92%
High-School Grad
146.0 sq mi
ZIP Area
77
Density / Sq Mi
$51,993
Median Household Income
$39,285
Median Earnings
$1,004
Median Rent
$433,200
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Motel - Motel with 25 units on 5.49 acres near beach.
Where is this motel located?
The property is located at 4253 Hwy 101 N Gearhart, OR.
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: Prime Hwy 101 frontage (217sf) in Gearhart, OR, offering excellent exposure.; 5.49 acres of land zoned C2 for Commercial/Residential use, providing versatile development opportunities.; Operating motel with 25 rental units (5 two‑bedroom, 20 one‑bedroom with kitchenettes) generating income.
