Hospitality Complex on Highway
For Sale
$1,850,000
14080 Highway 85 N, Alexander, ND
Multi-asset hospitality destination with diverse rental income streams.
Property Size23,592 SF
Lot Size33.00 Acres
Price / SF$78.42
Days on Market156
Property Features for 14080 Highway 85 N
General Information
Standard status
Active
Size
23,592 SF
Lot size
33.00 Acres
Taxes and HOA fees
Annual Taxes
$22,503
Listing Agency:
Weichert, Realtors - Providence Properties
(701) 444-3070
Listed By:
Michelle De Koekkoek
(360) 815-0095
Source:
Exprealty
Added: Apr 1
Changed: Aug 31
Last Checked: Sep 1 at 8:42PM
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 Weichert, Realtors - Providence Properties
Investment Insights
Based on property information with market context.
This hospitality complex is situated on over 33 acres with highway frontage. It features a mix of nightly, weekly, and monthly rental income opportunities. The West Motel includes a wood-accented lobby and office, with 14 rooms on the main floor, including ADA and hearing-impaired accessible units, and 18 rooms upstairs. Guests have access to a common area overlooking the lobby, a full kitchen, and laundry facilities. Vehicle plug-ins are available for winter. The East Motel offers 28 rooms, each with private covered porches and some featuring wood finishes. Guest laundry and various layouts, including kitchenettes, are available. There are over 77 RV sites with full hookups (water, sewer, and power) and 4 cabins. The RV clubhouse includes a lounge, showers, laundry, and a covered deck. A large metal-roofed shop contains staff laundry, a half bath, and a parts room. The property includes two 5,000-gallon water storage tanks for fire protection. Located adjacent to a major highway and convenience store, the property offers high visibility and accessibility. Significant acreage remains for potential expansion.
Key Highlights
- Diverse income streams from nightly, weekly, and monthly rentals.
- Prime highway frontage on over 33 acres, offering high visibility and easy access.
- 77 RV sites with full hookups and a dedicated clubhouse with lounge, showers, laundry, and covered deck.
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
$145,232
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
7.85%
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%
$2,904,640
$2.9M
Cap Rate 7%
$2,074,743
$2.1M
Cap Rate 9%
$1,613,689
$1.6M
Market Conditions
NOI Build-Up for 23,592 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
$339.7K $14.40/SF
− Vacancy
−$34.0K −$1.44/SF
EGI
$305.8K $12.96/SF
− OpEx
−$160.5K −$6.80/SF
NOI
$145.2K $6.16/SF
Area
McKenzie County, ND
Vacancy
10.00%
Lease Rate
$14.40 /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%
$2,904,640
Cap Rate 7%
$2,074,743
Cap Rate 9%
$1,613,689
Alternative Uses
Best Use
Hotel Hospitality
$2.07M
$1.82M – $2.42M
NOI $145,232 @ 7.0% cap · market cap 7.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.61M
$4.91M – $6.55M
NOI $392,722 @ 7.0% cap · market cap 21.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Explore this area
Business Placement
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hospitality property - Multi-asset hospitality destination with diverse rental income streams.
Where is this hospitality property located?
The property is located at 14080 Highway 85 N Alexander, ND.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: Diverse income streams from nightly, weekly, and monthly rentals.; Prime highway frontage on over 33 acres, offering high visibility and easy access.; 77 RV sites with full hookups and a dedicated clubhouse with lounge, showers, laundry, and covered deck.
