Sleep Inn & Suites
For Sale
Contact for pricing
1350 South 42nd Street, Grand Forks, ND 58201
Interior-corridor hotel affiliated with Choice Hotels and positioned near Interstate 29 in Grand Forks.
Property Size39,232 SF
Price / SF$160.46
Days on Market126
Property Features for 1350 South 42nd Street
General Information
Standard status
Active
Size
39,232 SF
Property subtype
Hospitality
Occupancy
57%
Net Operating Income
$604,798
Additional Details
Highway Access
Yes
Building Details
Year Built
2011
Stories
3
Listing Agency:
Marcus & Millichap - Minneapolis
Listed By:
Jon Ruzicka · License #B63379000
Source:
Crexi
Added: Apr 27
Changed: Aug 30
Last Checked: Aug 30 at 4:52AM
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 Marcus & Millichap - Minneapolis
Investment Insights
Based on property information with market context.
Sleep Inn & Suites is an 82-room interior-corridor hotel at 1350 South 42nd Street in Grand Forks, North Dakota. The property contains 39,232 square feet and was built in 2011. It operates under the Sleep Inn brand, part of Choice Hotels International, providing access to the company’s reservation platform, loyalty program, and distribution network.
Interstate 29 is nearby, with traffic counts exceeding 20,000 vehicles per day in the immediate area. Local lodging demand is connected to the University of North Dakota, Altru Health System, Grand Forks Air Force Base approximately 15 miles west, manufacturing and distribution operations, and Columbia Mall with surrounding national retailers. The university enrolls over 14,000 students and contributes year-round activity through athletics, events, and academic programs.
Interstate 29 is nearby, with traffic counts exceeding 20,000 vehicles per day in the immediate area. Local lodging demand is connected to the University of North Dakota, Altru Health System, Grand Forks Air Force Base approximately 15 miles west, manufacturing and distribution operations, and Columbia Mall with surrounding national retailers. The university enrolls over 14,000 students and contributes year-round activity through athletics, events, and academic programs.
Key Highlights
- 82‑room interior‑corridor hotel
- 39,232‑square‑foot property built in 2011
- Sleep Inn affiliation with Choice Hotels International
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
$216,466
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
3.44%
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%
$4,329,320
$4.3M
Cap Rate 7%
$3,092,371
$3.1M
Cap Rate 9%
$2,405,178
$2.4M
Market Conditions
NOI Build-Up for 39,232 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
$517.9K $13.20/SF
− Vacancy
−$62.1K −$1.58/SF
EGI
$455.7K $11.62/SF
− OpEx
−$239.3K −$6.10/SF
NOI
$216.5K $5.52/SF
Area
Grand Forks County, ND
Vacancy
12.00%
Lease Rate
$13.20 /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%
$4,329,320
Cap Rate 7%
$3,092,371
Cap Rate 9%
$2,405,178
Alternative Uses
Best Use
Hotel Hospitality
$3.09M
$2.71M – $3.61M
NOI $216,466 @ 7.0% cap · market cap 3.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.26M
$6.36M – $8.47M
NOI $508,447 @ 7.0% cap · market cap 8.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
205
Businesses Nearby
Explore this area
Business Placement
Demographics for 58201, ND
42,598
Population
20,277
Households
2.1
Avg Household Size
34
Median Age
40%
College-Educated
96%
High-School Grad
69.0 sq mi
ZIP Area
617
Density / Sq Mi
$69,120
Median Household Income
$43,503
Median Earnings
$966
Median Rent
$274,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Interior-corridor hotel affiliated with Choice Hotels and positioned near Interstate 29 in Grand Forks.
Where is this hotel located?
The property is located at 1350 South 42nd Street Grand Forks, ND.
What is the asking price?
The asking price for this property is $6,295,000.
What are key features of this property?
This property features: 82‑room interior‑corridor hotel; 39,232‑square‑foot property built in 2011; Sleep Inn affiliation with Choice Hotels International
