Listing Agency: Great Lakes & Land Real Estate Show Phone

Listed By: Timothy Keohane Show Phone

Added: Aug 20 Changed: Aug 28 Last Checked: Aug 29 at 1:06AM

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MLS# 11943575

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 motel property occupies 3.43 acres and includes 3,908 square feet of improvements. The operation features ten guest rooms, a motel office with continental breakfast seating, a small gift shop, and an attached caretaker’s residence with two bedrooms, one bathroom, an office, and a partial basement. Additional storage and work areas are provided by a detached garage, pole building, workshop, and shed.

The property is positioned along US 41 in the Three Lakes area of Michigan’s Upper Peninsula. George, Beaufort, Michigamme, and Ruth lakes are within 5 miles, with nearby opportunities for fishing, swimming, boating, and canoeing. Craig Lake State Park, Van Riper State Park, McCormick Trails, and Canyon Falls are within 30 minutes, while Trail #8 provides direct snowmobile access.

Updates include double-pane vinyl-frame windows, two added hot water heaters, insulation improvements, and guest-room renovations involving drywall, flooring, furniture, and shower surrounds. The circular drive accommodates cars, larger vehicles, campers, trailers, and boats.

Key Highlights

• 3.43‑acre motel property with 3,908 square feet of improvements
• Ten guest rooms plus a renovated two‑bedroom, one‑bath caretaker’s residence
• Motel office includes continental breakfast seating and a small gift shop

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 49855, MI

32,929

Population

15,779

Households

2.1

Avg Household Size

38

Median Age

45%

College-Educated

96%

High-School Grad

206.9 sq mi

ZIP Area

159

Density / Sq Mi

$62,321

Median Household Income

$27,408

Median Earnings

$992

Median Rent

$245,100

Median Home Value

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Similar Off Market Nearby

• Bear Paw Inn — 27672 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
• Three Lakes Motel — 27837 US-41, Michigamme, MI 49861

Frequently Asked Questions

What type of property is this?

Motel - Four-season lodging property with guest accommodations, an owner or caretaker residence, and flexible outdoor parking areas.

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: 3.43‑acre motel property with 3,908 square feet of improvements; Ten guest rooms plus a renovated two‑bedroom, one‑bath caretaker’s residence; Motel office includes continental breakfast seating and a small gift shop