Building Details

Building Size 1,200 SF

Year Built 1936

Listing Agency: Keller Williams Premier s***@kw.com Show Phone

Listed By: Sheri DeLozier · License #128888 Show Phone

Source: Eufaulaproperties

Added: May 5 Changed: Aug 6 Last Checked: Aug 8 at 11:20AM

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Investment Insights

Based on property information with market context.

This six-unit motel property includes six units/restrooms and a large neon sign that requires rehabilitation. The property is listed on the National Register of Historic Places and carries a Com zoning designation. Its improvements and historic character are tied to the Route 66 corridor.

Located at 220 Walnut Street in Chelsea, Oklahoma, the property has frontage on Highway 66, with additional lots transferring as part of the sale. The total acreage is estimated at approximately 0.69 acres and will be determined by a surveyor. The historic registration and existing motel configuration provide a defined foundation for restoration planning.

Key Highlights

• Six‑unit motel with six units/restrooms
• Listed on the National Register of Historic Places
• Frontage on Highway 66 in Chelsea, Oklahoma

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

$7,223

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

8.03%

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%

$144,460 $144.5K

Cap Rate 7%

$103,186 $103.2K

Cap Rate 9%

$80,256 $80.3K

Market Conditions

NOI Build-Up for 1,200 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

$17.3K $14.40/SF

− Vacancy

−$2.1K −$1.73/SF

EGI

$15.2K $12.67/SF

− OpEx

−$8.0K −$6.65/SF

NOI

$7.2K $6.02/SF

Area

Rogers County, OK

Vacancy

12.00%

Lease Rate

$14.40 /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%

$144,460

Cap Rate 7%

$103,186

Cap Rate 9%

$80,256

Alternative Uses

Best Use

Hotel Hospitality

$103.2K

$90.3K – $120.4K (±1% cap)

NOI $7,223 @ 7.0% cap · market cap 8.03%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$300.5K

$263.0K – $350.6K (±1% cap)

NOI $21,038 @ 7.0% cap · market cap 23.40%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Suggested Use

Top Pick Building Supply Real Estate Agency Dental Office Law Firm HVAC Service 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

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

190

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 74016, OK

5,919

Population

2,692

Households

2.2

Avg Household Size

42

Median Age

13%

College-Educated

87%

High-School Grad

143.6 sq mi

ZIP Area

41

Density / Sq Mi

$59,701

Median Household Income

$31,685

Median Earnings

$779

Median Rent

$114,700

Median Home Value

Questions? Ask Rey

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

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Similar For Sale Nearby

Historic Motel with Pole Sign

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Similar Off Market Nearby

• Chelsea Motor Inn — 325 E Layton St, Chelsea, OK 74016
• Hickory North Apartments — 500 Hickory St, Chelsea, OK 74016

Frequently Asked Questions

What type of property is this?

Motel - Motel property with highway frontage, additional lots, and a large neon sign requiring rehabilitation.

Where is this motel located?

The property is located at 220 Walnut Street Chelsea, OK.

What is the asking price?

The asking price for this property is $89,900.

What are key features of this property?

This property features: Six‑unit motel with six units/restrooms; Listed on the National Register of Historic Places; Frontage on Highway 66 in Chelsea, Oklahoma