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: Oct 3 Last Checked: Oct 11 at 4:51AM

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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.

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 / Yr

$85,863

Cap Rate

3.43%

Suggested Prices Based on Cap Rates

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

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 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 (±1% cap)

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 (±1% cap)

NOI $108,436 @ 7.0% cap · market cap 4.34%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Hotels

Suggested Use

Top Pick Plumbing Service Big Box & Wholesale Store Garden Center Grocery & Convenience Store (Bike/Boat/Book/etc) Store Hair Salon

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

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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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?

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