Historic 40-Room Hospitality
For Sale
$1,577,500
Pending
5565 E Silver Springs Boulevard, Silver Springs, FL 34488
Historic three-building property with 40 rooms and frontage on State Road 40, served by public water and sewer.
Property Size16,102 SF
Lot Size0.73 Acres
Days on Market488
Property Features for 5565 E Silver Springs Boulevard
General Information
Standard status
Pending
Size
16,102 SF
Lot size
0.73 Acres
Property subtype
Commercial/Industrial
Site & Location
Road Access
Yes
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$14,775
Building Details
Year Built
1963
Listing Agency:
Century 21 J.W.Morton R.E.
(352) 726-6668
Listed By:
Richard Fernley · License #3602811
(352) 464-2664
Source:
Exitrealty
Added: May 9, 2025
Changed: Sep 1
Last Checked: Sep 7 at 6:33AM
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 Century 21 J.W.Morton R.E.
Investment Insights
Based on property information with market context.
Historic hospitality property originally developed in 1963 as a Howard Johnson’s Motor Lodge, with three buildings totaling approximately 16,102 leasable square feet and 40 rooms. The site includes approximately 121 feet of frontage on State Road 40 and is served by gas, electric, public water, and public sewer utilities. Roof updates were completed in 2013 and 2022.
The property is positioned near the intersection of State Road 40 and State Road/County Road 35 in the Ocala, FL MSA and is directly across from Silver Springs State Park. The adjacent Howard Johnson’s restaurant parcel is also available for purchase, which would reunite the historic complex after more than 30 years.
The property lies within Catalyst Site #4 of the Silver Springs CRA Master Plan, which supports reinvestment and redevelopment and contemplates potential changes to State Road 40 routing that could affect frontage and access. The Marion County Special Use Permit (SUP) process allows alternative uses to be explored beyond the existing hospitality configuration, and the seller provided conceptual renderings for potential renovation scenarios under continued hospitality use.
The property is positioned near the intersection of State Road 40 and State Road/County Road 35 in the Ocala, FL MSA and is directly across from Silver Springs State Park. The adjacent Howard Johnson’s restaurant parcel is also available for purchase, which would reunite the historic complex after more than 30 years.
The property lies within Catalyst Site #4 of the Silver Springs CRA Master Plan, which supports reinvestment and redevelopment and contemplates potential changes to State Road 40 routing that could affect frontage and access. The Marion County Special Use Permit (SUP) process allows alternative uses to be explored beyond the existing hospitality configuration, and the seller provided conceptual renderings for potential renovation scenarios under continued hospitality use.
Key Highlights
- Historic hospitality property built in 1963 featuring 40 rooms across three buildings totaling 16,102 SF
- 0.73‑acre site with approximately 121 ft of frontage on State Road 40, near State Road and County Road 35 intersection
- Served by public water and public sewer, plus gas and electric utilities
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
$74,572
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
4.73%
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%
$1,491,440
$1.5M
Cap Rate 7%
$1,065,314
$1.1M
Cap Rate 9%
$828,578
$828.6K
Market Conditions
NOI Build-Up for 16,102 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
$241.5K $15.00/SF
− Vacancy
−$84.5K −$5.25/SF
EGI
$157.0K $9.75/SF
− OpEx
−$82.4K −$5.12/SF
NOI
$74.6K $4.63/SF
Area
Marion County, FL
Vacancy
35.00%
Lease Rate
$15.00 /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%
$1,491,440
Cap Rate 7%
$1,065,314
Cap Rate 9%
$828,578
Alternative Uses
Best Use
Hotel Hospitality
$1.07M
$932.2K – $1.24M
NOI $74,572 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.79M
$7.69M – $10.26M
NOI $615,503 @ 7.0% cap · market cap 39.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
195
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 34488, FL
11,392
Population
6,816
Households
1.7
Avg Household Size
52
Median Age
19%
College-Educated
87%
High-School Grad
85.6 sq mi
ZIP Area
133
Density / Sq Mi
$45,239
Median Household Income
$29,074
Median Earnings
$1,098
Median Rent
$75,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Historic three-building property with 40 rooms and frontage on State Road 40, served by public water and sewer.
Where is this motel located?
The property is located at 5565 E Silver Springs Boulevard Silver Springs, FL.
What is the asking price?
The asking price for this property is $1,577,500.
What are key features of this property?
This property features: Historic hospitality property built in 1963 featuring 40 rooms across three buildings totaling 16,102 SF; 0.73‑acre site with approximately 121 ft of frontage on State Road 40, near State Road and County Road 35 intersection; Served by public water and public sewer, plus gas and electric utilities
