Established Business with Motel
For Sale
$1,650,000
51815 Kenai Spur Hwy Nikiski/North, Kenai, AK 99635
Tavern, liquor store, and motel business for sale.
Property Size5,934 SF
Price / SF$278.06
Days on Market111
Property Features for 51815 Kenai Spur Hwy Nikiski/North
General Information
Standard status
Active
Size
5,934 SF
Listing Agency:
Jack White Real Estate Kenai
Listed By:
Fred Braun · License #LIC.#14729
(907) 252-8375
Source:
Kachemakgrouprealestate
Added: May 21
Changed: Sep 8
Last Checked: Sep 7 at 2:50PM
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 Jack White Real Estate Kenai
Investment Insights
Based on property information with market context.
This established business, operating since 1965, includes a tavern with an outside smoking building, a beverage dispensary liquor license, and a package liquor license. The property also features a full-service liquor store and a newer two-story motel with 10 units and an on-site laundry unit. This commercial real estate opportunity is located on the Kenai Spur Highway.
Key Highlights
- Established business since 1965
- Includes Tavern, Liquor Store, and Motel
- Beverage dispensary and package liquor license included
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
$118,222
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
7.16%
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%
$2,364,440
$2.4M
Cap Rate 7%
$1,688,886
$1.7M
Cap Rate 9%
$1,313,578
$1.3M
Market Conditions
NOI Build-Up for 5,934 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
$166.6K $28.08/SF
− Vacancy
−$9.0K −$1.52/SF
EGI
$157.6K $26.56/SF
− OpEx
−$39.4K −$6.64/SF
NOI
$118.2K $19.92/SF
Area
Kenai Peninsula County, AK
Vacancy
5.40%
Lease Rate
$28.08 /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%
$2,364,440
Cap Rate 7%
$1,688,886
Cap Rate 9%
$1,313,578
Alternative Uses
Best Use
Specialty Retail
$1.69M
$1.48M – $1.97M
NOI $118,222 @ 7.0% cap · market cap 7.16%
Second Best
Hotel Hospitality
$652.3K
$570.8K – $761.0K
NOI $45,662 @ 7.0% cap · market cap 2.77%
Theoretical Best
Multifamily LT 5
$41.16M
$36.01M – $48.01M
NOI $2,880,886 @ 7.0% cap · market cap 174.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 99635, AK
24
Population
54
Households
0.4
Avg Household Size
54
Median Age
91%
High-School Grad
4,904.9 sq mi
ZIP Area
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Tavern, liquor store, and motel business for sale.
Where is this motel located?
The property is located at 51815 Kenai Spur Hwy Nikiski/North Kenai, AK.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Established business since 1965; Includes Tavern, Liquor Store, and Motel; Beverage dispensary and package liquor license included
