Building Details

Year Built 1984

Buildings 2

Stories 2

Units 64

Added: Aug 26, 2025 Changed: Mar 16

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Investment Insights

Based on property information with market context.

This is a fully operational 64-room motel and restaurant located in Sparta, North Carolina, situated within the Blue Ridge Mountains. The property is positioned near major highways, airports, national parks, and wineries. The motel features a total heated area of 14,797 square feet and includes a variety of guest rooms: one suite with two queen beds, a queen sofa sleeper, and a kitchenette; six upscale rooms each with two queen beds; twelve standard rooms each with two double beds; nine standard rooms each with one king bed; thirteen standard rooms each with one queen bed; twenty-three standard rooms each with two queen beds; and one handicap accessible room. The property also includes conference and event spaces, such as a conference room and conference hall, along with public restrooms and patio storage with tables and chairs for 100 guests. Operational and support areas include a front desk and lobby, a back office with a kitchen area, an employee break room, a main laundry plus guest laundry, and a vending area. The basement provides 2,310 square feet of workshop and storage areas, including a solar storage room with two 100-gallon tanks and solar equipment. Sustainability features include 48 solar panels designed to heat water. The property includes a 48-seat restaurant, which is newly remodeled and fully operational, open Monday through Saturday from 7:00 am to 8:00 pm, complementing motel operations by serving both guests and local clientele. The property sits on a 1.51-acre lot.

Key Highlights

• Property Overview
• -Total Heated Square Footage: 14,797 sq. ft.
• Guest Rooms (64 total):

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

$134,039

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

3.53%

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%

$2,680,780 $2.7M

Cap Rate 7%

$1,914,843 $1.9M

Cap Rate 9%

$1,489,322 $1.5M

Market Conditions

NOI Build-Up for 14,797 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

$195.3K $13.20/SF

− Vacancy

−$16.6K −$1.12/SF

EGI

$178.7K $12.08/SF

− OpEx

−$44.7K −$3.02/SF

NOI

$134.0K $9.06/SF

Area

Alleghany County, NC

Vacancy

8.50%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

25.00%

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%

$2,680,780

Cap Rate 7%

$1,914,843

Cap Rate 9%

$1,489,322

Alternative Uses

Best Use

Specialty Retail

$1.91M

$1.68M – $2.23M (±1% cap)

NOI $134,039 @ 7.0% cap · market cap 3.53%

Second Best

Hotel Hospitality

$1.03M

$904.6K – $1.21M (±1% cap)

NOI $72,366 @ 7.0% cap · market cap 1.90%

Theoretical Best

Office A

$3.21M

$2.81M – $3.75M (±1% cap)

NOI $225,009 @ 7.0% cap · market cap 5.92%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Location Intelligence

Trade Area within ½ mile

17

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 28675, NC

6,138

Population

3,867

Households

1.6

Avg Household Size

50

Median Age

24%

College-Educated

84%

High-School Grad

107.4 sq mi

ZIP Area

57

Density / Sq Mi

$44,137

Median Household Income

$29,686

Median Earnings

$717

Median Rent

$202,100

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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

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Frequently Asked Questions

What type of property is this?

Motel - Fully operational 64-room motel and restaurant located in Sparta, NC

Where is this motel located?

The property is located at 341 Main St Unit Sparta UNIT SPARTA Unit SPARTA Sparta, NC.

What is the asking price?

The asking price for this property is $3,800,000.

What are key features of this property?

This property features: Property Overview; -Total Heated Square Footage: 14,797 sq. ft.; Guest Rooms (64 total):