43-Unit Non-Smoking
For Sale
Contact for pricing
1451 S STEPHENSON AVE, Iron Mountain, MI 49801
Interior-corridor 43-unit non-smoking hotel with fitness center, guest laundry, and breakfast area.
Property Size20,180 SF
Price / SF$84.24
Days on Market94
Property Features for 1451 S STEPHENSON AVE
General Information
Standard status
Active
Size
20,180 SF
Property subtype
Hospitality
Building Details
Year Built
1996
Stories
2
Listing Agency:
Southeast International Hotel Brokers
Listed By:
Frank Smith · License #MO 1999019778
(417) 865-2520
Source:
Crexi
Added: Jun 5
Changed: Aug 28
Last Checked: Sep 1 at 11:20AM
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 Southeast International Hotel Brokers
Investment Insights
Based on property information with market context.
This 43-unit, two-story, interior-corridor, non-smoking hotel offers simple but exceptionally clean, spacious guestrooms. The property includes an apartment and 1BR living quarters, along with amenities such as a breakfast area serving continental breakfast, a fitness center, guest laundry, and a dry sauna.
The hotel is positioned directly on a 4-lane state business highway with strong visibility, located midway between a VA medical center and a local hospital.
Additional on-site income is generated through a 24-hour tanning salon and a sundries store.
The hotel is positioned directly on a 4-lane state business highway with strong visibility, located midway between a VA medical center and a local hospital.
Additional on-site income is generated through a 24-hour tanning salon and a sundries store.
Key Highlights
- 43‑unit, interior‑corridor, 2‑story non‑smoking hotel
- Year built 1996
- Amenities include fitness center, guest laundry, and dry sauna
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
$75,917
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
4.47%
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%
$1,518,340
$1.5M
Cap Rate 7%
$1,084,529
$1.1M
Cap Rate 9%
$843,522
$843.5K
Market Conditions
NOI Build-Up for 20,180 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
$181.6K $9.00/SF
− Vacancy
−$21.8K −$1.08/SF
EGI
$159.8K $7.92/SF
− OpEx
−$83.9K −$4.16/SF
NOI
$75.9K $3.76/SF
Area
Dickinson County, MI
Vacancy
12.00%
Lease Rate
$9.00 /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%
$1,518,340
Cap Rate 7%
$1,084,529
Cap Rate 9%
$843,522
Alternative Uses
Best Use
Hotel Hospitality
$1.08M
$949.0K – $1.27M
NOI $75,917 @ 7.0% cap · market cap 4.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.89M
$3.40M – $4.54M
NOI $272,343 @ 7.0% cap · market cap 16.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
623
Businesses Nearby
Explore this area
Business Placement
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Interior-corridor 43-unit non-smoking hotel with fitness center, guest laundry, and breakfast area.
Where is this hotel located?
The property is located at 1451 S STEPHENSON AVE Iron Mountain, MI.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: 43‑unit, interior‑corridor, 2‑story non‑smoking hotel; Year built 1996; Amenities include fitness center, guest laundry, and dry sauna
