Historic Red Wing
For Sale
Contact for pricing
56 El Paso Blvd, Manitou Springs, CO 80829
Boutique motel in Manitou Springs near Garden of the Gods.
Property Size11,588 SF
Price / SF$215.74
Days on Market158
Property Features for 56 El Paso Blvd
General Information
Standard status
Active
Size
11,588 SF
Property subtype
Hospitality
Zoning
C
Building Details
Year Built
1951
Year Renovated
2016
Buildings
1
Stories
2
Listing Agency:
NAI Highland, LLC
(719) 577-0044
Listed By:
John Benson · License #CO FA.100088508
Source:
Crexi
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 10 at 12:21PM
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 NAI Highland, LLC
Investment Insights
Based on property information with market context.
The historic Red Wing Motel, originally constructed in 1951 and expanded in 1961, is an 11,588 square foot building located in Manitou Springs, Colorado. The property provides access to the Garden of the Gods park and views of Pikes Peak. Extensively renovated in 2016 with an investment exceeding $1.3 million, this turnkey operation features 19 updated guest rooms. The property also includes a manager's 1-bedroom apartment and an owner's 2-bedroom apartment. Modern comforts include high-speed internet and smart TVs. The Red Wing Motel is known for its cleanliness, quiet location, and welcoming atmosphere. This property presents an opportunity for value-add enhancements in a tourist destination.
Key Highlights
- Turnkey boutique motel in a prime tourist location with immediate access to Garden of the Gods and views of Pikes Peak.
- Extensively renovated in 2016 with over $1.3 million invested.
- Features 19 updated guest rooms, plus a manager's 1‑bedroom apartment and an owner's 2‑bedroom apartment.
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
$87,039
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
3.48%
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%
$1,740,780
$1.7M
Cap Rate 7%
$1,243,414
$1.2M
Cap Rate 9%
$967,100
$967.1K
Market Conditions
NOI Build-Up for 11,588 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
$208.6K $18.00/SF
− Vacancy
−$25.3K −$2.19/SF
EGI
$183.2K $15.81/SF
− OpEx
−$96.2K −$8.30/SF
NOI
$87.0K $7.51/SF
Area
El Paso County, CO
Vacancy
12.15%
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%
$1,740,780
Cap Rate 7%
$1,243,414
Cap Rate 9%
$967,100
Alternative Uses
Best Use
Hotel Hospitality
$1.24M
$1.09M – $1.45M
NOI $87,039 @ 7.0% cap · market cap 3.48%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$154.52M
$135.21M – $180.28M
NOI $10,816,586 @ 7.0% cap · market cap 432.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
269
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80829, CO
5,343
Population
2,920
Households
1.8
Avg Household Size
48
Median Age
53%
College-Educated
97%
High-School Grad
20.1 sq mi
ZIP Area
266
Density / Sq Mi
$85,341
Median Household Income
$51,231
Median Earnings
$1,175
Median Rent
$567,000
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Motel - Boutique motel in Manitou Springs near Garden of the Gods.
Where is this motel located?
The property is located at 56 El Paso Blvd Manitou Springs, CO.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Turnkey boutique motel in a prime tourist location with immediate access to Garden of the Gods and views of Pikes Peak.; Extensively renovated in 2016 with over $1.3 million invested.; Features 19 updated guest rooms, plus a manager's 1‑bedroom apartment and an owner's 2‑bedroom apartment.
