Renovated 16-Room
For Sale
$1,199,000
Pending
1856 SHERMAN, Hollywood, FL 33020
Renovated lodging property with upgraded kitchens and bathrooms, new septic and plumbing, and on-site parking.
Property Size5,193 SF
Days on Market4215
Property Features for 1856 SHERMAN
General Information
Standard status
Pending
Size
5,193 SF
Property subtype
General Commercial
Additional Details
Gross Income
$200,000
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$15,000
Amenities
3
12 Parking Spaces.
Building Details
Year Built
1956
Tenancy
Multi
Listing Agency:
L.D Realty Group LLC
(305) 834-9199
Listed By:
Lana Dutov
(305) 834-9199
Source:
Xome
Added: Jan 26, 2015
Changed: Aug 2
Last Checked: Aug 2 at 5:13AM
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 L.D Realty Group LLC
Investment Insights
Based on property information with market context.
This 16-room motel offers 5,193 square feet of hospitality space with improvements that include a new septic system, updated plumbing, and upgraded kitchen and bathroom areas. The property was built in 1956 and includes 12 parking spaces for guests and visitors.
Located just south of Sheridan in Hollywood, the motel is approximately five minutes from the beach and close to shopping centers. The owner-paid utility setup includes water, cable, electric, and trash services. The property also includes an arrangement for the owner to remain during the first 6 months after closing.
Located just south of Sheridan in Hollywood, the motel is approximately five minutes from the beach and close to shopping centers. The owner-paid utility setup includes water, cable, electric, and trash services. The property also includes an arrangement for the owner to remain during the first 6 months after closing.
Key Highlights
- 16‑room motel with 5,193 SF of property size
- Recently renovated with upgraded kitchen and bathrooms
- New septic system and updated plumbing
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
$39,072
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
3.26%
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%
$781,440
$781.4K
Cap Rate 7%
$558,171
$558.2K
Cap Rate 9%
$434,133
$434.1K
Market Conditions
NOI Build-Up for 5,193 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
$93.5K $18.00/SF
− Vacancy
−$11.2K −$2.16/SF
EGI
$82.3K $15.84/SF
− OpEx
−$43.2K −$8.32/SF
NOI
$39.1K $7.52/SF
Area
Hollywood, FL
Vacancy
12.00%
Lease Rate
$18.00 /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%
$781,440
Cap Rate 7%
$558,171
Cap Rate 9%
$434,133
Alternative Uses
Best Use
Hotel Hospitality
$558.2K
$488.4K – $651.2K
NOI $39,072 @ 7.0% cap · market cap 3.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.03M
$1.78M – $2.37M
NOI $142,205 @ 7.0% cap · market cap 11.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,392
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 33020, FL
45,044
Population
22,508
Households
2
Avg Household Size
41
Median Age
29%
College-Educated
89%
High-School Grad
6.0 sq mi
ZIP Area
7,507
Density / Sq Mi
$52,535
Median Household Income
$32,449
Median Earnings
$1,444
Median Rent
$306,700
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Hollywood Events & Venues — 1320 N Dixie Hwy Unit # 6, Hollywood, FL 33020
- Adobe Hacienda Motel — 1223 N Federal Hwy, Hollywood, FL 33020
- Professional Hotel Motel — 1416 N Dixie Hwy, Hollywood, FL 33020
- Economy Inn — 1764 Cleveland St, Hollywood, FL 33020
- Oasis at hollywood — 1724 McKinley St, Hollywood, FL 33020
Frequently Asked Questions
What type of property is this?
Motel - Renovated lodging property with upgraded kitchens and bathrooms, new septic and plumbing, and on-site parking.
Where is this motel located?
The property is located at 1856 SHERMAN Hollywood, FL.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: 16‑room motel with 5,193 SF of property size; Recently renovated with upgraded kitchen and bathrooms; New septic system and updated plumbing
