27-Key Motel on Federal
For Sale
Contact for pricing
5450 Federal Blvd, Denver, CO 80221
Income-producing motel with redevelopment potential near Downtown Denver.
Property Size9,005 SF
Lot Size0.72 Acres
Price / SF$244.31
Days on Market181
Property Features for 5450 Federal Blvd
General Information
Standard status
Active
Size
9,005 SF
Lot size
0.72 Acres
Property subtype
Hospitality, Business for Sale
Zoning
C5
Building Details
Year Built
1948
Buildings
3
Stories
1
Listing Agency:
Digby Commercial Advisors
(720) 843-1330
Listed By:
Wade Wilson · License #FA100083302
Source:
Crexi
Added: Feb 11
Changed: Aug 7
Last Checked: Aug 11 at 6:17PM
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 Digby Commercial Advisors
Investment Insights
Based on property information with market context.
This income-producing motel features 27 keys and is situated on a 0.72-acre (31,394 SF) lot. The property is located along high-visibility Federal Blvd, offering strong frontage and regional access to I-70 and I-76. Improvements to the property include multiple building phases: the original structure built in 1948, an owner/manager residence built in 1971, and a modern wing added in 2015. On-site amenities include laundry facilities and value-add storage/garage space. The property reports steady occupancy and includes billboard income potential. Zoned C-5, the property allows for high-intensity commercial uses with redevelopment optionality and a maximum height of 35 feet. This central infill location near Downtown Denver presents an opportunity for continued operation, repositioning, or land redevelopment.
Key Highlights
- High‑visibility location on Federal Blvd with strong frontage and regional access to I‑70 and I‑76.
- Income‑producing 27‑key motel with steady occupancy.
- C‑5 zoning allows for high‑intensity commercial uses and redevelopment potential (35‑ft max height).
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
$69,293
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
3.15%
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%
$1,385,860
$1.4M
Cap Rate 7%
$989,900
$989.9K
Cap Rate 9%
$769,922
$769.9K
Market Conditions
NOI Build-Up for 9,005 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
$162.1K $18.00/SF
− Vacancy
−$16.2K −$1.80/SF
EGI
$145.9K $16.20/SF
− OpEx
−$76.6K −$8.51/SF
NOI
$69.3K $7.69/SF
Area
Denver, CO
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$1,385,860
Cap Rate 7%
$989,900
Cap Rate 9%
$769,922
Alternative Uses
Best Use
Hotel Hospitality
$989.9K
$866.2K – $1.15M
NOI $69,293 @ 7.0% cap · market cap 3.15%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.87M
$2.51M – $3.34M
NOI $200,663 @ 7.0% cap · market cap 9.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
451
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 80221, CO
42,224
Population
15,165
Households
2.8
Avg Household Size
34
Median Age
28%
College-Educated
84%
High-School Grad
9.1 sq mi
ZIP Area
4,640
Density / Sq Mi
$84,425
Median Household Income
$42,720
Median Earnings
$1,642
Median Rent
$449,700
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- White Rock Motel & RV park — 5555 Federal Blvd, Denver, CO 80221
- Primrose Motel — 5450 N Federal Blvd, Denver, CO 80221
- North Federal Valley Motel — 6231 Federal Blvd, Denver, CO 80221
- Residence Village (Townhouses) — 3333 Regis Blvd, Denver, CO 80221
- Joy Motel — 5524 Federal Blvd, Denver, CO 80221
Frequently Asked Questions
What type of property is this?
Motel - Income-producing motel with redevelopment potential near Downtown Denver.
Where is this motel located?
The property is located at 5450 Federal Blvd Denver, CO.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: High‑visibility location on Federal Blvd with strong frontage and regional access to I‑70 and I‑76.; Income‑producing 27‑key motel with steady occupancy.; C‑5 zoning allows for high‑intensity commercial uses and redevelopment potential (35‑ft max height).
