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    Lakeside Resort and Motel Title is generated by Realmo AI

    27672 US 41 Highway, Michigamme, MI 49861

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    Claim this Listing
    For Sale
    $425,000

    COMMERCIAL - Michigamme, MI

    Property size:
    4,658 SF
    Lot size:
    1.38 Acres
    Price / SF:
    $91/SF
    Added:
    Nov 14, 2025
    Days on Market:
    189
    Last Refresh:
    May 22 at 6:06 am

    Property Features for 27672 US 41 Highway

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Parking features
    Parking Lot
    Security features
    Security Lighting
    Exterior features
    Security Lighting
    Standard status
    Active
    Size
    4,658 SF
    Lot size
    1.38 Acres

    Taxes and HOA fees

    Tax Year
    2025
    Tax Annual Amount
    5271

    Utilities

    Heating system
    Space Heater
    Water source
    Private
    Water front
    1

    Building Details

    Year built
    1950
    Roof type
    Shingle

    We can help!

    Listing Contact
    TIM KEOHANE

    Listing agent TIM KEOHANE License #UPAR

    Listing office GREAT LAKES & LAND OF MARQUETTE, INC. 856 W Washington Street, Marquette, MI

    Listing date Nov 14, 2025

    MLS# 50194326

    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.

    HighLights

    • Established 10‑bedroom, 10‑bath resort/motel with 350 feet of lake frontage on Ruth Lake and George Lake.
    • Includes a spacious two‑bedroom, two‑bath manager's residence with full kitchen and office.
    • Turnkey business opportunity with a history of welcoming vacationers, hunters, and travelers.
    • Updated lodge with remodeled baths, LED televisions, air‑conditioning, and quality bedding.
    • Private dock and four outbuildings for storage and recreation.
    • Located near ATV trails, hunting lands, and other recreational opportunities.

    Overview

    This commercial property, located in Michigamme, MI, presents an opportunity to own a lakeside business and lifestyle retreat. Situated in Spurr Township's Three Lakes Region, the property overlooks 350 feet of frontage between Ruth Lake and George Lake. It features The Bear's Paw, a 10-bedroom, 10-bath resort and motel. The lodge offers over 3,100 square feet of space with pine finishes, guest suites, remodeled baths, LED televisions, multiple refrigerators, air-conditioning units, and bedding. A private dock and four outbuildings provide storage and recreation space. The property also includes a two-bedroom, two-bath manager's residence with a full kitchen, dining room, and office space. The property is suited for tourist and snowmobile trade, and offers recreational possibilities such as fishing, boating, ATV trails, and hunting lands. The property size is 4,658 square feet and the lot size is 1.38 acres.

    Financial Insights

    Value Estimation Calculated for Hotel Hospitality

    Conservative
    $276.6K
    NOI $24,891 @ 9.00% cap · cautious / downside scenario
    Moderate
    $355.6K
    NOI $24,891 @ 7.00% cap · market / base-case scenario
    Aggressive
    $497.8K
    NOI $24,891 @ 5.00% cap · optimistic / upside scenario

    NOI & Cap Rate Calculator

    NOI Build-Up
    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.
         Calculated for Hotel Hospitality

    Component $ $/SF
    Gross rent $69.9k $15.00
    − Vacancy −$17.5k −$3.75
    EGI $52.4k $11.25
    − OpEx −$27.5k −$5.91
    NOI $24.9k $5.34
    4,658 SF · lease $15.00/SF/yr · vacancy 25.00% · expense 52.50%

    Alternative Use Scenarios

    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 local authorities.
    Location Intelligence

    Current Use by Public Records

    Motels

    Map

    City
    Michigamme
    County
    Marquette
    State
    Michigan
    Longitude
    -88.0095
    Latitude
    46.6688

    FAQs

    What type of property is this?
    Motel - Hospitality destination with lake frontage in Michigan's Upper Peninsula.
    Where is this motel 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: Established 10‑bedroom, 10‑bath resort/motel with **350 feet of lake frontage on Ruth Lake and George Lake**.; Includes a **spacious two‑bedroom, two‑bath manager's residence** with full kitchen and office.; **Turnkey business opportunity** with a history of welcoming vacationers, hunters, and travelers.
    (906) 228-9312
    We can help!
    Listing Contact
    TIM KEOHANE
    Real Estate License ID: UPAR
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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