Sparta Motel and Restaurant For
For Sale
$3,800,000
341 Main St Unit Sparta UNIT SPARTA Unit SPARTA, Sparta, NC 28675
Fully operational 64-room motel and restaurant located in Sparta, NC
Property Size14,797 SF
Lot Size1.51 Acres
Price / SF$256.81
Days on Market360
Property Features for 341 Main St Unit Sparta UNIT SPARTA Unit SPARTA
General Information
Standard status
Active
Property type
Motels, Conventional restaurants, Hospitality properties, Restaurants
Size
14,797 SF
Class
C
Lot size
1.51 Acres
Building Details
Year Built
1984
Buildings
2
Stories
2
Units
64
Added: Aug 26, 2025
Changed: Mar 16
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
NOI $134,039 @ 7.0% cap · market cap 3.53%
Second Best
Hotel Hospitality
$1.03M
$904.6K – $1.21M
NOI $72,366 @ 7.0% cap · market cap 1.90%
Theoretical Best
Office A
$3.21M
$2.81M – $3.75M
NOI $225,009 @ 7.0% cap · market cap 5.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
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
Questions? Ask Rey
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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):
