49-Key Hotel with Indoor
New
For Sale
Contact for pricing
201 FOURTH AVE NW, Deer River, MN 56636
Independent lodging property with varied guest rooms, meeting space, and on-site recreational amenities.
Property Size16,068 SF
Lot Size2.18 Acres
Price / SF$155.59
Days on Market5
Property Features for 201 FOURTH AVE NW
General Information
Standard status
Active
Size
16,068 SF
Lot size
2.18 Acres
Property subtype
Hospitality
Financials
Gross Income
$719,030
Business Included
Yes
Amenities
indoor pool and hot tub
breakfast area
meeting/party room
guest laundry
Building Details
Year Built
2004
Stories
2
Units
49
Listing Agency:
GJG Commercial
Listed By:
David Kampmeyer · License #40916733
Source:
Crexi
Added: Aug 7
Changed: Aug 10
Last Checked: Aug 10 at 7:33AM
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 GJG Commercial
Investment Insights
Based on property information with market context.
White Oak Inn & Suites is a 49-room independent hotel offered with its underlying real estate on approximately 2.18 acres. The 16,068-square-foot property was built in 2004 and includes an indoor pool and hot tub beneath a vaulted wood ceiling, along with a breakfast area, meeting and party room, and guest laundry facilities. Room configurations include queen, king, accessible, and Jacuzzi options.
The hotel is located at 201 Fourth Ave NW in Deer River, Minnesota, approximately half a mile from a regional casino that does not provide on-site lodging. The property operates without franchise royalties, brand fees, or PIP obligations and may accommodate either continued independent operation or a future franchise conversion. The offering includes the hotel improvements and underlying land.
The hotel is located at 201 Fourth Ave NW in Deer River, Minnesota, approximately half a mile from a regional casino that does not provide on-site lodging. The property operates without franchise royalties, brand fees, or PIP obligations and may accommodate either continued independent operation or a future franchise conversion. The offering includes the hotel improvements and underlying land.
Key Highlights
- 49‑room hotel on approximately 2.18 acres
- 16,068‑square‑foot property built in 2004
- Indoor pool and hot tub with vaulted wood ceiling
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
$85,863
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
3.43%
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%
$1,717,260
$1.7M
Cap Rate 7%
$1,226,614
$1.2M
Cap Rate 9%
$954,033
$954.0K
Market Conditions
NOI Build-Up for 16,068 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
$241.0K $15.00/SF
− Vacancy
−$60.3K −$3.75/SF
EGI
$180.8K $11.25/SF
− OpEx
−$94.9K −$5.91/SF
NOI
$85.9K $5.34/SF
Area
Itasca County, MN
Vacancy
25.00%
Lease Rate
$15.00 /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%
$1,717,260
Cap Rate 7%
$1,226,614
Cap Rate 9%
$954,033
Alternative Uses
Best Use
Hotel Hospitality
$1.23M
$1.07M – $1.43M
NOI $85,863 @ 7.0% cap · market cap 3.43%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,436 @ 7.0% cap · market cap 4.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
146
Businesses Nearby
Explore this area
Business Placement
Demographics for 56636, MN
5,055
Population
2,937
Households
1.7
Avg Household Size
46
Median Age
20%
College-Educated
93%
High-School Grad
436.9 sq mi
ZIP Area
12
Density / Sq Mi
$59,858
Median Household Income
$32,128
Median Earnings
$690
Median Rent
$195,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Independent lodging property with varied guest rooms, meeting space, and on-site recreational amenities.
Where is this hotel located?
The property is located at 201 FOURTH AVE NW Deer River, MN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 49‑room hotel on approximately 2.18 acres; 16,068‑square‑foot property built in 2004; Indoor pool and hot tub with vaulted wood ceiling
