Listing Agency: Great Lakes & Land Real Estate Show Phone

Listed By: Timothy Keohane Show Phone

Added: Nov 14, 2025 Changed: Aug 21 Last Checked: Aug 21 at 1:06PM

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MLS# 11628058

Copyright © 2026 My State 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.

This resort property occupies 1.38 acres and includes 4,658 square feet of improvements. The lodging component offers 10 bedrooms and 10 bathrooms, with a lodge area of more than 3,100 square feet featuring pine finishes, remodeled baths, LED televisions, refrigerators, air-conditioning units, and updated guest furnishings. A separate two-bedroom, two-bath manager’s residence includes a full kitchen, dining room, and office.

The property has 350 feet of lake frontage between Ruth Lake and George Lake, along with a private dock and four outbuildings. On-site recreational equipment includes a fishing boat, kayaks, canoes, and life jackets. The address is on US 41 Highway in Michigamme, within Michigan’s Upper Peninsula.

Key Highlights

• 350 feet of frontage between Ruth Lake and George Lake
• 4,658‑square‑foot resort property on 1.38 acres
• 10‑bedroom, 10‑bath lodging operation

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

$24,891

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

5.86%

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%

$497,820 $497.8K

Cap Rate 7%

$355,586 $355.6K

Cap Rate 9%

$276,567 $276.6K

Market Conditions

NOI Build-Up for 4,658 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

$69.9K $15.00/SF

− Vacancy

−$17.5K −$3.75/SF

EGI

$52.4K $11.25/SF

− OpEx

−$27.5K −$5.91/SF

NOI

$24.9K $5.34/SF

Area

Marquette County, MI

Vacancy

25.00%

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%

$497,820

Cap Rate 7%

$355,586

Cap Rate 9%

$276,567

Alternative Uses

Best Use

Hotel Hospitality

$355.6K

$311.1K – $414.9K (±1% cap)

NOI $24,891 @ 7.0% cap · market cap 5.86%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.37M

$1.20M – $1.60M (±1% cap)

NOI $96,029 @ 7.0% cap · market cap 22.60%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Resorts

Lease Details

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

16

Businesses Nearby

Explore this area Business Placement

Demographics for 49861, MI

565

Population

634

Households

0.9

Avg Household Size

60

Median Age

30%

College-Educated

96%

High-School Grad

183.9 sq mi

ZIP Area

3

Density / Sq Mi

$66,806

Median Household Income

$38,542

Median Earnings

$229,200

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Resort - Established hospitality property with guest accommodations, a private dock, and a separate residence for on-site management.

Where is this resort located?

The property is located at 27672 US 41 Highway Michigamme, MI.

What is the asking price?

The asking price for this property is $425,000.

What are key features of this property?

This property features: 350 feet of frontage between Ruth Lake and George Lake; 4,658‑square‑foot resort property on 1.38 acres; 10‑bedroom, 10‑bath lodging operation