Renovated 82-Room Economy
For Sale
Contact for pricing
2681 North Monroe Street, Tallahassee, FL 32303
Renovated 82-room economy hotel on 1.92 acres along a primary commercial corridor.
Property Size35,414 SF
Lot Size1.92 Acres
Price / SF$90.36
Days on Market52
Property Features for 2681 North Monroe Street
General Information
Standard status
Active
Size
35,414 SF
Lot size
1.92 Acres
Property subtype
Hospitality
Additional Details
Business Included
Yes
Building Details
Year Built
1978
Year Renovated
2025
Stories
2
Listing Agency:
NewGen Advisory Phoenix
(520) 664-4091
Listed By:
Jigar "Jay" Desai · License #AZ SA675144000
Source:
Crexi
Added: Jul 7
Changed: Aug 8
Last Checked: Aug 26 at 7:11AM
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 NewGen Advisory Phoenix
Investment Insights
Based on property information with market context.
Econo Lodge North Tallahassee is an 82-room economy hotel situated on 1.92 acres along one of Tallahassee’s primary commercial corridors. The property completed a comprehensive renovation in 2025, including a new roof, parking lot resurfacing, and full bathroom renovations, supported by more than $300,000 in capital improvements.
The hotel operates under the Econo Lodge/Choice Hotels flag and is positioned to serve diversified demand tied to Florida State Capitol activity, Florida State University, Florida A&M University, and Tallahassee International Airport. Tallahassee is home to two major universities and is anchored by state government and healthcare, contributing to a year-round demand profile.
With no single demand driver dominating the mix, the asset is designed for steadier operating performance throughout the year, including periods impacted by the Legislative Session and major university events.
The hotel operates under the Econo Lodge/Choice Hotels flag and is positioned to serve diversified demand tied to Florida State Capitol activity, Florida State University, Florida A&M University, and Tallahassee International Airport. Tallahassee is home to two major universities and is anchored by state government and healthcare, contributing to a year-round demand profile.
With no single demand driver dominating the mix, the asset is designed for steadier operating performance throughout the year, including periods impacted by the Legislative Session and major university events.
Key Highlights
- Renovated 82‑room economy hotel on 1.92 acres along one of Tallahassee’s primary commercial corridors
- Comprehensive 2025 renovation with $300,000+ in capital improvements including a new roof
- 2025 upgrades also include parking lot re‑surfacing and full bathroom renovations
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
$151,395
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
4.73%
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%
$3,027,900
$3.0M
Cap Rate 7%
$2,162,786
$2.2M
Cap Rate 9%
$1,682,167
$1.7M
Market Conditions
NOI Build-Up for 35,414 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
$425.0K $12.00/SF
− Vacancy
−$106.2K −$3.00/SF
EGI
$318.7K $9.00/SF
− OpEx
−$167.3K −$4.73/SF
NOI
$151.4K $4.27/SF
Area
Tallahassee, FL
Vacancy
25.00%
Lease Rate
$12.00 /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%
$3,027,900
Cap Rate 7%
$2,162,786
Cap Rate 9%
$1,682,167
Alternative Uses
Best Use
Hotel Hospitality
$2.16M
$1.89M – $2.52M
NOI $151,395 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.68M
$7.60M – $10.13M
NOI $607,738 @ 7.0% cap · market cap 18.99%
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
631
Businesses Nearby
Explore this area
Business Placement
Demographics for 32303, FL
48,644
Population
24,864
Households
2
Avg Household Size
34
Median Age
46%
College-Educated
95%
High-School Grad
34.8 sq mi
ZIP Area
1,398
Density / Sq Mi
$63,123
Median Household Income
$37,702
Median Earnings
$1,324
Median Rent
$204,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Renovated 82-room economy hotel on 1.92 acres along a primary commercial corridor.
Where is this hotel located?
The property is located at 2681 North Monroe Street Tallahassee, FL.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Renovated 82‑room economy hotel on 1.92 acres along one of Tallahassee’s primary commercial corridors; Comprehensive 2025 renovation with $300,000+ in capital improvements including a new roof; 2025 upgrades also include parking lot re‑surfacing and full bathroom renovations
