Turnkey Income-Producing Hospitality
For Sale
Contact for pricing
302 Tuscola, Bay City, MI 48708
Two-story, 18-room property with immediate revenue potential.
Property Size9,900 SF
Lot Size1.40 Acres
Price / SF$79.80
Days on Market209
Property Features for 302 Tuscola
General Information
Standard status
Active
Size
9,900 SF
Lot size
1.40 Acres
Property subtype
Special Purpose
Building Details
Year Built
1925
Listing Agency:
CENTURY 21 Signature Realty Saginaw
(989) 798-7898
Listed By:
Diana Bay · License #6506040025
Source:
Crexi
Added: Jan 24
Changed: Aug 8
Last Checked: Aug 8 at 6:32AM
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 CENTURY 21 Signature Realty Saginaw
Investment Insights
Based on property information with market context.
Located at 302 Tuscola in Bay County, this expansive 9,900+ sq ft, two-story property on 1.4 acres features a newly refinished 18-room short-stay residence. Currently operating as an income-producing business, it serves traveling medical professionals seeking upscale, short-term accommodations near local hospitals. The business name and concept may be included. Renovations completed in Spring 2025 include a commercial kitchen, multiple bathrooms and showers, a theater room, an exercise area, and a fireplace lounge. The property offers immediate revenue potential of $26k per month. Major updates include a boiler installed in 2022, central air installed in 2024, and a roof installed in 2024. This property is suited for hospitality, short term rental, multifamily, and residential income purposes.
Key Highlights
- Turnkey, income‑producing business and property with immediate revenue potential of $26k per month.
- Expansive 9,900+ sq ft, two‑story property on 1.4 acres.
- Newly refinished 18‑room short‑stay residence catering to traveling medical professionals.
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
$54,394
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
6.89%
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%
$1,087,880
$1.1M
Cap Rate 7%
$777,057
$777.1K
Cap Rate 9%
$604,378
$604.4K
Market Conditions
NOI Build-Up for 9,900 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
$104.5K $10.56/SF
− Vacancy
−$5.6K −$0.57/SF
EGI
$98.9K $9.99/SF
− OpEx
−$44.5K −$4.50/SF
NOI
$54.4K $5.49/SF
Area
Bay County, MI
Vacancy
5.40%
Lease Rate
$10.56 /SF/Yr
Expense Ratio
45.00%
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%
$1,087,880
Cap Rate 7%
$777,057
Cap Rate 9%
$604,378
Alternative Uses
Best Use
Apartment 5plus
$777.1K
$679.9K – $906.6K
NOI $54,394 @ 7.0% cap · market cap 6.89%
Second Best
Hotel Hospitality
$603.0K
$527.6K – $703.5K
NOI $42,210 @ 7.0% cap · market cap 5.34%
Theoretical Best
Office A
$1.79M
$1.57M – $2.09M
NOI $125,453 @ 7.0% cap · market cap 15.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
485
Businesses Nearby
Explore this area
Business Placement
Demographics for 48708, MI
25,860
Population
12,625
Households
2
Avg Household Size
41
Median Age
17%
College-Educated
89%
High-School Grad
29.1 sq mi
ZIP Area
889
Density / Sq Mi
$50,216
Median Household Income
$31,978
Median Earnings
$703
Median Rent
$98,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hospitality property - Two-story, 18-room property with immediate revenue potential.
Where is this hospitality property located?
The property is located at 302 Tuscola Bay City, MI.
What is the asking price?
The asking price for this property is $790,000.
What are key features of this property?
This property features: Turnkey, income‑producing business and property with immediate revenue potential of $26k per month.; Expansive 9,900+ sq ft, two‑story property on 1.4 acres.; Newly refinished 18‑room short‑stay residence catering to traveling medical professionals.
