Resort Lodge with
For Sale
$549,000
5964 E US 2 Highway, Bessemer, MI 49938
COMMERCIAL - Bessemer, MI
Property Size7,294 SF
Lot Size11.00 Acres
Price / SF$75.27
Days on Market478
Property Features for 5964 E US 2 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Commercial
Patio and Porch features
Patio
Exterior features
Deck/Patio
Lot features
Rural
Subdivision
Bessemer Twp (27002)
Standard status
Active
Size
7,294 SF
Lot size
11.00 Acres
Utilities
Heating system
Forced Air, Oil
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Water front features
Pond
Amenities
fireplace
bar
sauna
pond
Building Details
Year built
1979
Listing Agency:
FIRST WEBER, INC
(906) 667-6366
Listed By:
ELIZABETH GRAY · License #6501451809
(218) 220-9085
Added: May 1, 2025
Changed: Aug 4
Last Checked: Aug 21 at 1:06PM
MLS# 50173697
Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Full log resort lodge built in 1979 offering 7,294 SF of space and set on 11 acres with a pond. The property has operated as a successful rental for the last 2 years and is being sold with the unit fully furnished.
The lodge features bars on both levels and a grand dining area on the main floor with a massive stone fireplace. Additional features include a full kitchen and 2 bathrooms, an impressive log staircase leading to the loft area overlooking the main floor, and a lower level with its own fireplace, another bar, a sauna, and 3 bedrooms. Outdoor space includes a deck/patio and patio.
Utilities and core systems include forced air heat with oil, central air with ceiling fans, and public water. Located at 5964 E US 2 Highway in Bessemer, MI, the property is positioned for high-traffic visibility with proximity to ski hills, snowmobile and ORV trails, and Lake Superior.
The lodge features bars on both levels and a grand dining area on the main floor with a massive stone fireplace. Additional features include a full kitchen and 2 bathrooms, an impressive log staircase leading to the loft area overlooking the main floor, and a lower level with its own fireplace, another bar, a sauna, and 3 bedrooms. Outdoor space includes a deck/patio and patio.
Utilities and core systems include forced air heat with oil, central air with ceiling fans, and public water. Located at 5964 E US 2 Highway in Bessemer, MI, the property is positioned for high-traffic visibility with proximity to ski hills, snowmobile and ORV trails, and Lake Superior.
Key Highlights
- 11‑acre lodge site with a pond waterfront feature
- 7,294 SF full log resort lodge with furnished interior
- Built in 1979 with Commercial zoning
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
$38,977
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
7.10%
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%
$779,540
$779.5K
Cap Rate 7%
$556,814
$556.8K
Cap Rate 9%
$433,078
$433.1K
Market Conditions
NOI Build-Up for 7,294 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
$109.4K $15.00/SF
− Vacancy
−$27.4K −$3.75/SF
EGI
$82.1K $11.25/SF
− OpEx
−$43.1K −$5.91/SF
NOI
$39.0K $5.34/SF
Area
Gogebic County, MI
Vacancy
25.00%
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%
$779,540
Cap Rate 7%
$556,814
Cap Rate 9%
$433,078
Alternative Uses
Best Use
Hotel Hospitality
$556.8K
$487.2K – $649.6K
NOI $38,977 @ 7.0% cap · market cap 7.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.55M
$1.36M – $1.81M
NOI $108,437 @ 7.0% cap · market cap 19.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
113
Businesses Nearby
Explore this area
Business Placement
Demographics for 49938, MI
7,340
Population
4,728
Households
1.6
Avg Household Size
49
Median Age
23%
College-Educated
95%
High-School Grad
225.6 sq mi
ZIP Area
33
Density / Sq Mi
$44,379
Median Household Income
$34,553
Median Earnings
$590
Median Rent
$95,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Resort - Full log resort lodge on a pond with Commercial zoning, public water, forced-air oil heat, and central air.
Where is this resort located?
The property is located at 5964 E US 2 Highway Bessemer, MI.
What is the asking price?
The asking price for this property is $549,000.
What are key features of this property?
This property features: 11‑acre lodge site with a pond waterfront feature; 7,294 SF full log resort lodge with furnished interior; Built in 1979 with Commercial zoning
