Building Details

Year Built 1901

Listing Agency: KELLER WILLIAMS DTC s***@creekcos.com Show Phone

Listed By: SANDY COLOHAN · License #01025105

Source: Corcoran

Added: Jul 6, 2025 Changed: Aug 8 Last Checked: Aug 8 at 4:45AM

Report an Issue

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 KELLER WILLIAMS DTC

Investment Insights

Based on property information with market context.

This property features a lodge with a bar/restaurant, nine rooms upstairs, an up/down duplex, and a manager's apartment on the main floor. The bar/restaurant has a full liquor license, and the commercial kitchen is licensed and equipped with a fire suppression system. All licenses are current and included in the price. The duplex consists of a small studio upstairs and a two-bedroom unit downstairs. Additionally, there are 12 RV spaces situated on the river, with 11 offering full hookups (electric, water, and sewer) and one with electric and water only. These spaces are rented out monthly, ranging from $900 to $1000 per space. The US Post Office has a ground lease with two five-year extensions. The property spans over 22 acres. Following the 2013 flood, the river channel was reconstructed to enhance fish habitat and mitigate future flooding, including widening and deepening the channel.

Key Highlights

• Established income from 12 RV spaces on the river, rented monthly from $900-$1000 per space.
• Bar/restaurant with full liquor license and licensed commercial kitchen (including fire suppression system), all licenses included.
• US Post Office ground lease with two 5‑year extensions.

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

$96,539

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

7.43%

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%

$1,930,780 $1.9M

Cap Rate 7%

$1,379,129 $1.4M

Cap Rate 9%

$1,072,656 $1.1M

Market Conditions

NOI Build-Up for 8,963 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

$132.6K $14.79/SF

− Vacancy

−$3.8K −$0.43/SF

EGI

$128.7K $14.36/SF

− OpEx

−$32.2K −$3.59/SF

NOI

$96.5K $10.77/SF

Area

Larimer County, CO

Vacancy

2.90%

Lease Rate

$14.79 /SF/Yr

Expense Ratio

25.00%

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%

$1,930,780

Cap Rate 7%

$1,379,129

Cap Rate 9%

$1,072,656

Alternative Uses

Best Use

Specialty Retail

$1.38M

$1.21M – $1.61M (±1% cap)

NOI $96,539 @ 7.0% cap · market cap 7.43%

Second Best

Multifamily LT 5

$1.32M

$1.15M – $1.54M (±1% cap)

NOI $92,255 @ 7.0% cap · market cap 7.10%

Theoretical Best

Office A

$2.41M

$2.11M – $2.81M (±1% cap)

NOI $168,407 @ 7.0% cap · market cap 12.95%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hotels

Suggested Use

Top Pick Restaurant Real Estate Agency Bed & Breakfast

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

12

Businesses Nearby

Explore this area Business Placement

Demographics for 80515, CO

845

Population

607

Households

1.4

Avg Household Size

52

Median Age

44%

College-Educated

100%

High-School Grad

48.8 sq mi

ZIP Area

17

Density / Sq Mi

$79,896

Median Household Income

$49,764

Median Earnings

$539,800

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this hotels located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Hotel - Lodge with bar/restaurant, rooms, duplex, RV spaces, and post office.

Where is this hotel located?

The property is located at 1601 US Highway 34 Drake, CO.

What is the asking price?

The asking price for this property is $1,300,000.

What are key features of this property?

This property features: Established income from 12 RV spaces on the river, rented monthly from $900-$1000 per space.; Bar/restaurant with full liquor license and **licensed commercial kitchen** (including fire suppression system), all licenses included.; US Post Office ground lease with two 5‑year extensions.