Building Details

Year built 1994

Listing Agency: FIRST WEBER, INC Show Phone

Listed By: PETER SEIFERT · License #6501422652 Show Phone

Added: Jul 7 Changed: Aug 4 Last Checked: Sep 1 at 7:06PM

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MLS# 50214298

Copyright © 2026 Upper Peninsula Association of Realtors. 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.

This resort property features a modern timber and wood lodge as the hospitality center, with the main lodge built in 1994. The lodge includes a restaurant and bar with seating for 150 guests, plus a loft dining area off the main dining room. There is also an additional dining room with its own loft that can accommodate approximately another 100 guests, supported by a full kitchen. Lodging totals 18 units built in 1997 and 2001 with 46 beds, including five two-story 2-bedroom cabins with spacious living, a four-unit log motel, and a nine-unit motel. The property size is 20,224 square feet on 1.65 acres.

Located in Copper Harbor in Keweenaw County, the property is described as offering Lake Superior views. The business is currently set up and operating, with the current owners since 1977.

Key Highlights

• Main lodge built in 1994 with a restaurant and bar seating for 150 guests
• Additional dining room with its own loft can accommodate approximately another 100 guests
• Full kitchen included

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

Hotel Hospitality

$1.30M

$1.13M – $1.51M (±1% cap)

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

Second Best

—

—

no second resolved use

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

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Frequently Asked Questions

What type of property is this?

Resort - Timber lodge with restaurant/bar and lodging units, including cabins and motel rooms, on 1.65 acres.

Where is this resort located?

The property is located at 255 Gratiot Street 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: Main lodge built in 1994 with a restaurant and bar seating for 150 guests; Additional dining room with its own loft can accommodate approximately another 100 guests; Full kitchen included