Building Details

Year Built 1904

Listing Agency: Janisch Realty, Inc

Listed By: Lisa Janisch · License #40298563 Show Phone

Source: Searchhousesnow

Added: Jul 27 Changed: Sep 8 Last Checked: Sep 9 at 8:49PM

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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 Janisch Realty, Inc

Investment Insights

Based on property information with market context.

Vermilion Park Inn is a historic bed and breakfast property originally built as the Soudan Mining Hospital in 1891. The inn features an open-concept layout designed to support shared spaces, with main and lower-level kitchens that serve spacious gathering areas. Many of the guest rooms include private baths, providing privacy for overnight stays.

The property offers easy access to Lake Vermilion. It is also located near the Boundary Waters Canoe Area Wilderness and Giants Ridge Championship Golf & Ski Resort, positioning it for visitors seeking an outdoor-focused getaway.

As presented, the inn’s main and lower levels are arranged to accommodate both everyday comfort and group moments, supported by the two kitchen areas and the open flow between gathering spaces.

Key Highlights

• Historic inn originally built as the Soudan Mining Hospital in 1891
• Open‑concept layout with main‑level and lower‑level kitchens for gatherings
• Private‑bath rooms

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

$61,608

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

7.29%

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%

$1,232,160 $1.2M

Cap Rate 7%

$880,114 $880.1K

Cap Rate 9%

$684,533 $684.5K

Market Conditions

NOI Build-Up for 8,894 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

$166.5K $18.72/SF

− Vacancy

−$36.8K −$4.14/SF

EGI

$129.7K $14.58/SF

− OpEx

−$68.1K −$7.66/SF

NOI

$61.6K $6.93/SF

Area

St. Louis County, MN

Vacancy

22.10%

Lease Rate

$18.72 /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%

$1,232,160

Cap Rate 7%

$880,114

Cap Rate 9%

$684,533

Alternative Uses

Best Use

Hotel Hospitality

$880.1K

$770.1K – $1.03M (±1% cap)

NOI $61,608 @ 7.0% cap · market cap 7.29%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$3.45M

$3.02M – $4.03M (±1% cap)

NOI $241,508 @ 7.0% cap · market cap 28.58%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Bed & breakfasts

Suggested Use

Top Pick Storage Facility Cafe & Coffee Shop Grocery & Convenience Store Gym & Fitness Center Food Market Bed & Breakfast

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

33

Businesses Nearby

Explore this area Business Placement

Demographics for 55782, MN

389

Population

262

Households

1.5

Avg Household Size

56

Median Age

18%

College-Educated

96%

High-School Grad

10.8 sq mi

ZIP Area

36

Density / Sq Mi

$55,658

Median Household Income

$35,625

Median Earnings

$99,400

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties What are key features of this property?

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Similar Off Market Nearby

• Vermilion Park Inn — 30 Center St, Soudan, MN 55782

Frequently Asked Questions

What type of property is this?

Bed & breakfast - Historic inn originally built as a mining hospital, with private-bath rooms and main and lower-level kitchens for gatherings.

Where is this bed & breakfast located?

The property is located at 30 Center St Soudan, MN.

What is the asking price?

The asking price for this property is $845,000.

What are key features of this property?

This property features: Historic inn originally built as the Soudan Mining Hospital in 1891; Open‑concept layout with main‑level and lower‑level kitchens for gatherings; Private‑bath rooms