Building Details

Year built 1962

Listing Agency: GREAT LAKES & LAND OF MARQUETTE, INC. t***@greatlakesandland.com Show Phone

Listed By: DONALD WEAVER · License #6501451415 Show Phone

Added: Aug 20 Last Checked: Aug 21 at 7:06AM

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MLS# 50219203

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 3,908-square-foot motel occupies 3.43 acres along US 41 and contains 10 guest rooms plus a caretaker’s residence with an adjoining office. The two-bedroom, one-bath residence includes a 1/2 basement. An on-site office incorporates a continental breakfast area with seating and a small gift shop. Guest rooms feature updated insulation, drywall, flooring, furniture, shower surrounds, 42-inch TVs, microwaves, and mini refrigerators.

Property improvements include energy-efficient double-pane vinyl windows, two hot water heaters, rear-wall insulation, and new siding. A detached garage, pole building, workshop, and shed provide storage for vehicles and maintenance equipment. The circular front drive accommodates cars, large vehicles, campers, trailers, and boats, while the backyard includes a fire pit.

The motel is in the Three Lakes area near George, Beaufort, Michigamme, and Ruth lakes, each within 5 miles. State parks, trail systems, waterfall viewing areas, and direct access to Trail #8 are also part of the surrounding recreational setting.

Key Highlights

• 10 guest rooms plus a two‑bedroom, one‑bath caretaker’s residence with adjoining office
• 3.43‑acre motel property with 3,908 square feet of building area
• Located on US 41 in the Three Lakes area of Michigan’s Upper Peninsula

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

$20,883

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

3.81%

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%

$417,660 $417.7K

Cap Rate 7%

$298,329 $298.3K

Cap Rate 9%

$232,033 $232.0K

Market Conditions

NOI Build-Up for 3,908 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

$58.6K $15.00/SF

− Vacancy

−$14.7K −$3.75/SF

EGI

$44.0K $11.25/SF

− OpEx

−$23.1K −$5.91/SF

NOI

$20.9K $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%

$417,660

Cap Rate 7%

$298,329

Cap Rate 9%

$232,033

Alternative Uses

Best Use

Hotel Hospitality

$298.3K

$261.0K – $348.1K (±1% cap)

NOI $20,883 @ 7.0% cap · market cap 3.81%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.15M

$1.01M – $1.34M (±1% cap)

NOI $80,567 @ 7.0% cap · market cap 14.70%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

13

Businesses Nearby

Well-served

Demand for This Use

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

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Similar Off Market Nearby

• Bear Paw Inn — 27672 US-41, Michigamme, MI 49861
• Three Lakes Motel — 27837 US-41, Michigamme, MI 49861
• Ruth Lake Resort Upper Michigan — 27757 US-41, Michigamme, MI 49861
• Lake Ruth Resort Motel & Cabins — 27757 US-41, Michigamme, MI 49861

Frequently Asked Questions

What type of property is this?

Motel - Commercially zoned lodging property with updated guest rooms, an attached caretaker residence, and multiple accessory storage buildings.

Where is this motel located?

The property is located at 27837 US 41 Highway Michigamme, MI.

What is the asking price?

The asking price for this property is $548,000.

What are key features of this property?

This property features: 10 guest rooms plus a two‑bedroom, one‑bath caretaker’s residence with adjoining office; 3.43‑acre motel property with 3,908 square feet of building area; Located on US 41 in the Three Lakes area of Michigan’s Upper Peninsula