18-Room Hotel
For Sale
$790,000
302 Tuscola Road, Bay City, MI 48708
COM/IND/BUS OPP, Bay City, MI
Property Size9,376 SF
Lot Size1.40 Acres
Price / SF$84.26
Days on Market145
Property Features for 302 Tuscola Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Rooms
Basement
Patio and Porch features
Patio
Exterior features
Deck/Patio
Lot features
Residential Area
Subdivision
Bay City (09016)
Standard status
Active
APN
160-027-203-010-00
Size
9,376 SF
Lot size
1.40 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
17941
Utilities
Heating system
Oil
Cooling system
Central Air
Water source
Public
Amenities
commercial kitchen
theater room
exercise area
fireplace lounge
Building Details
Year built
1925
Roof type
Asphalt
Listing Agency:
Century 21 Signature Realty · Century 21 Real Estate
(989) 921-7000
Listed By:
Diana Bay · License #6506040025
(989) 798-7898
Added: May 6
Changed: Sep 5
Last Checked: Sep 27 at 1:06PM
MLS# 50206679
Copyright © 2026 Multiple Listing Service MiRealSource. 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 two-story hospitality property contains 9,376 square feet on 1.4 acres and includes an 18-room short-stay residence. The property is currently operating as an accommodation business serving traveling medical professionals. Renovations completed in Spring 2025 added a commercial kitchen, multiple bathrooms and showers, a theater room, exercise area, and fireplace lounge. A patio provides additional outdoor space.
Building systems include an oil heating system, central air installed in 2024, a boiler from 2022, and an asphalt roof completed in 2024. Constructed in 1925, the property has public water service and a basement. The business name and operating concept may be included with the sale.
Building systems include an oil heating system, central air installed in 2024, a boiler from 2022, and an asphalt roof completed in 2024. Constructed in 1925, the property has public water service and a basement. The business name and operating concept may be included with the sale.
Key Highlights
- 9,376‑square‑foot, two‑story hospitality property on 1.4 acres
- 18‑room short‑stay residence currently serving traveling medical professionals
- Spring 2025 renovations include commercial kitchen, bathrooms, showers, theater room, exercise area, and fireplace lounge
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
$51,515
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
6.52%
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%
$1,030,300
$1.0M
Cap Rate 7%
$735,929
$735.9K
Cap Rate 9%
$572,389
$572.4K
Market Conditions
NOI Build-Up for 9,376 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
$99.0K $10.56/SF
− Vacancy
−$5.3K −$0.57/SF
EGI
$93.7K $9.99/SF
− OpEx
−$42.1K −$4.50/SF
NOI
$51.5K $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%
$1,030,300
Cap Rate 7%
$735,929
Cap Rate 9%
$572,389
Alternative Uses
Best Use
Apartment 5plus
$735.9K
$643.9K – $858.6K
NOI $51,515 @ 7.0% cap · market cap 6.52%
Second Best
Hotel Hospitality
$571.1K
$499.7K – $666.3K
NOI $39,976 @ 7.0% cap · market cap 5.06%
Theoretical Best
Office A
$1.70M
$1.49M – $1.98M
NOI $118,813 @ 7.0% cap · market cap 15.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
18
Residential units
Turnkey business
Opportunity
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Recently renovated hospitality property with short-stay accommodations, commercial kitchen, and multiple guest amenities.
Where is this hotel located?
The property is located at 302 Tuscola Road 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: 9,376‑square‑foot, two‑story hospitality property on 1.4 acres; 18‑room short‑stay residence currently serving traveling medical professionals; Spring 2025 renovations include commercial kitchen, bathrooms, showers, theater room, exercise area, and fireplace lounge
