Spokane Valley Extended Stay
For Sale
Contact for pricing
Pending
12803 E Sprague Ave, Spokane, WA 99216
112-key extended stay hotel with repositioning potential.
Property Size38,700 SF
Lot Size2.03 Acres
Days on Market364
Property Features for 12803 E Sprague Ave
General Information
Standard status
Pending
Size
38,700 SF
Lot size
2.03 Acres
Property subtype
Multifamily, Hospitality
Building Details
Year Built
1998
Year Renovated
2006
Buildings
1
Stories
3
Listing Agency:
Crystal Investment Property
(503) 530-1316
Listed By:
Joseph Kennedy · License #950700057
Source:
Crexi
Added: Aug 13, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:40AM
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 Crystal Investment Property
Investment Insights
Based on property information with market context.
HomeTowne Studios Spokane Valley is a 112-key, economy scale extended stay hotel situated on approximately 2.03 acres along the I-90 corridor in Spokane Valley. Constructed in 1998 and last renovated in 2006, this three-story property features exterior corridors and offers a mix of full and queen studio units, including ADA-compliant rooms, all equipped with kitchenettes. The property, with a size of 38700 square feet, is currently branded but can be delivered unflagged with relatively minor liquidated damages, providing ownership flexibility for repositioning, integration, or independent operation. Located within minutes of key employment, education, and healthcare drivers such as Gonzaga University, Spokane Community College, and MultiCare Valley Hospital, the property benefits from its proximity to the 600-acre Spokane Business & Industrial Park, the Valley Hospital medical complex, and the upcoming $55M Spokane Valley Performing Arts Center. These contribute to sustained lodging demand from workforce, contractor, and event-related travel. Spokane Valley is a business-friendly submarket of the Spokane metro, offering direct access to I-90, regional transit, and Spokane International Airport, which is approximately 15 miles away. The property presents a compelling opportunity for value-add investment, adaptive reuse, or portfolio acquisition in one of Washington’s fastest-growing markets, with strong drive-to demand and consistent year-round occupancy from logistics, healthcare, and education sectors.
Key Highlights
- Extended stay hotel: 112‑key, economy scale with kitchenette‑equipped studio units, including ADA‑compliant rooms.
- Strategic location: Located along the I‑90 corridor in Spokane Valley, close to key employment, education, and healthcare drivers.
- Strong demand drivers: Benefits from sustained lodging demand.
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
$248,164
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
3.82%
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%
$4,963,280
$5.0M
Cap Rate 7%
$3,545,200
$3.5M
Cap Rate 9%
$2,757,378
$2.8M
Market Conditions
NOI Build-Up for 38,700 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
$580.5K $15.00/SF
− Vacancy
−$58.1K −$1.50/SF
EGI
$522.5K $13.50/SF
− OpEx
−$274.3K −$7.09/SF
NOI
$248.2K $6.41/SF
Area
Spokane, WA
Vacancy
10.00%
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%
$4,963,280
Cap Rate 7%
$3,545,200
Cap Rate 9%
$2,757,378
Alternative Uses
Best Use
Hotel Hospitality
$3.55M
$3.10M – $4.14M
NOI $248,164 @ 7.0% cap · market cap 3.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.98M
$8.74M – $11.65M
NOI $698,922 @ 7.0% cap · market cap 10.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
816
Businesses Nearby
Explore this area
Business Placement
Demographics for 99216, WA
28,379
Population
12,703
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
95%
High-School Grad
14.2 sq mi
ZIP Area
1,999
Density / Sq Mi
$69,958
Median Household Income
$40,652
Median Earnings
$1,307
Median Rent
$336,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - 112-key extended stay hotel with repositioning potential.
Where is this hotel located?
The property is located at 12803 E Sprague Ave Spokane, WA.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: Extended stay hotel: 112‑key, economy scale with kitchenette‑equipped studio units, including ADA‑compliant rooms.; Strategic location: Located along the I‑90 corridor in Spokane Valley, close to key employment, education, and healthcare drivers.; Strong demand drivers: Benefits from sustained lodging demand.
