Building Details

Building Size 20,224 SF

Year Built 1994

Construction timber

Listing Agency: First Weber - Bessemer s***@firstweber.com Show Phone

Listed By: Peter Seifert · License #6501422652 Show Phone

Source: Northwoodswi

Added: Jul 7 Changed: Aug 22 Last Checked: Aug 22 at 7:31AM

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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 First Weber - Bessemer

Investment Insights

Based on property information with market context.

This resort property includes a modern timber-and-wood lodge built in 1994, with a restaurant and bar offering seating for 150 guests. The building also has a loft dining area, a second dining room with its own loft, and a full kitchen. The additional dining room can accommodate approximately another 100 guests.

Lodging consists of 18 units built in 1997 and 2001, providing a total of 46 beds. The accommodations include five two-story, two-bedroom cabins, a four-unit log motel, and a nine-unit motel. The property is located at 255 Gratiot St in Copper Harbor, with views of Lake Superior.

Key Highlights

• Restaurant and bar in the main lodge with seating for 150 guests
• 18 lodging units built in 1997 and 2001
• 46 total beds across the lodging accommodations

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

$90,780

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

5.19%

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%

$1,815,600 $1.8M

Cap Rate 7%

$1,296,857 $1.3M

Cap Rate 9%

$1,008,667 $1.0M

Market Conditions

NOI Build-Up for 20,224 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

$303.4K $15.00/SF

− Vacancy

−$112.2K −$5.55/SF

EGI

$191.1K $9.45/SF

− OpEx

−$100.3K −$4.96/SF

NOI

$90.8K $4.49/SF

Area

St. Clair County, MI

Vacancy

37.00%

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%

$1,815,600

Cap Rate 7%

$1,296,857

Cap Rate 9%

$1,008,667

Alternative Uses

Best Use

Specialty Retail

$4.00M

$3.50M – $4.67M (±1% cap)

NOI $280,108 @ 7.0% cap · market cap 16.01%

Second Best

Hotel Hospitality

$1.30M

$1.13M – $1.51M (±1% cap)

NOI $90,780 @ 7.0% cap · market cap 5.19%

Theoretical Best

Multifamily LT 5

$15.20M

$13.30M – $17.74M (±1% cap)

NOI $1,064,261 @ 7.0% cap · market cap 60.81%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Resorts

Suggested Use

Top Pick Parking Lot & Garage Grocery & Convenience Store (Bike/Boat/Book/etc) Store Cafe & Coffee Shop Restaurant Real Estate Agency

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

89

Businesses Nearby

Explore this area Business Placement

Demographics for 49918, MI

141

Population

149

Households

0.9

Avg Household Size

62

Median Age

67%

College-Educated

100%

High-School Grad

37.4 sq mi

ZIP Area

4

Density / Sq Mi

$54,286

Median Household Income

$30,441

Median Earnings

$285,400

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Resort - Hospitality property combines a timber lodge, restaurant and bar with cabins and motel accommodations.

Where is this resort located?

The property is located at 255 Gratiot St Copper Harbor, MI.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: Restaurant and bar in the main lodge with seating for 150 guests; 18 lodging units built in 1997 and 2001; 46 total beds across the lodging accommodations