Historic Hotel with Restaurant and
New
For Sale
$875,000
201 Steele St, Algoma, WI 54201
Commercial Sale, Algoma, WI
Property Size12,844 SF
Lot Size0.21 Acres
Price / SF$68.13
Days on Market1
Property Features for 201 Steele St
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial Central (CC)
Elementary school district
Algoma
Middle school district
Algoma
High school district
Algoma
Subdivision
23-Algoma
Standard status
Active
Size
12,844 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Annual Amount
5154
Building Details
Year built
1857
Listing Agency:
ERA Starr Realty · ERA Real Estate
(920) 743-4321
Listed By:
Heidi Neubauer · License #91834125
(920) 493-6289
Added: Sep 3
Last Checked: Sep 3 at 8:06PM
MLS# 147814
Copyright © 2026 Door County MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 1857, this 12,844-square-foot hospitality property combines hotel accommodations with an on-site restaurant and bar. The updated building includes rooms and suites accommodating up to 6 guests, along with modern amenities. A third-floor suite provides 4 bedrooms, 2 baths, and water views.
The property occupies 0.21 acres in Algoma, two blocks from Lake Michigan and Crescent Beach. Guests can reach the waterfront boardwalk and beach on foot, with wineries, a brewery, art studios, boutique shops, and nearby Door County also identified in the surrounding area.
Commercial Central (CC) zoning supports the property’s commercial setting. The combination of lodging, food service, bar space, and its established historic building creates a multi-component hospitality asset.
The property occupies 0.21 acres in Algoma, two blocks from Lake Michigan and Crescent Beach. Guests can reach the waterfront boardwalk and beach on foot, with wineries, a brewery, art studios, boutique shops, and nearby Door County also identified in the surrounding area.
Commercial Central (CC) zoning supports the property’s commercial setting. The combination of lodging, food service, bar space, and its established historic building creates a multi-component hospitality asset.
Key Highlights
- 12,844‑square‑foot hotel, restaurant, and bar property
- Built in 1857 and updated with modern amenities
- Guest rooms and suites accommodate up to 6 people
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
$32,213
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
3.68%
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%
$644,260
$644.3K
Cap Rate 7%
$460,186
$460.2K
Cap Rate 9%
$357,922
$357.9K
Market Conditions
NOI Build-Up for 12,844 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
$123.3K $9.60/SF
− Vacancy
−$55.5K −$4.32/SF
EGI
$67.8K $5.28/SF
− OpEx
−$35.6K −$2.77/SF
NOI
$32.2K $2.51/SF
Area
Kewaunee County, WI
Vacancy
45.00%
Lease Rate
$9.60 /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%
$644,260
Cap Rate 7%
$460,186
Cap Rate 9%
$357,922
Alternative Uses
Best Use
Specialty Retail
$2.51M
$2.20M – $2.93M
NOI $175,706 @ 7.0% cap · market cap 20.08%
Second Best
Hotel Hospitality
$460.2K
$402.7K – $536.9K
NOI $32,213 @ 7.0% cap · market cap 3.68%
Theoretical Best
Office A
$2.99M
$2.62M – $3.49M
NOI $209,614 @ 7.0% cap · market cap 23.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
311
Businesses Nearby
5k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 68%
Home Improvements & Furnishings 32%
Mobil
Shops & Services
3,719 visits/mo
0.4 miles
DOOR COUNTY COOP
Home Improvements & Furnishings
1,769 visits/mo
0.1 miles
Demographics for 54201, WI
5,281
Population
2,603
Households
2
Avg Household Size
48
Median Age
19%
College-Educated
92%
High-School Grad
75.5 sq mi
ZIP Area
70
Density / Sq Mi
$65,772
Median Household Income
$39,787
Median Earnings
$823
Median Rent
$174,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Updated lodging property with guest rooms, suites, dining, and bar operations under Commercial Central zoning.
Where is this hotel located?
The property is located at 201 Steele St Algoma, WI.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 12,844‑square‑foot hotel, restaurant, and bar property; Built in 1857 and updated with modern amenities; Guest rooms and suites accommodate up to 6 people
