7-Bedroom Motel
For Sale
$650,000
604 Fernwood St, Panama City Beach, FL 32407
Former hospitality property with flexible room configuration near major beach-area roads, shopping, dining, attractions, and entertainment.
Property Size2,556 SF
Price / SF$254.30
Days on Market24
Property Features for 604 Fernwood St
General Information
Standard status
Active
Size
2,556 SF
Building Details
Year Built
1960
Listing Agency:
Think Real Estate
(850) 600-0605
Listed By:
Dien and Andrew Group · License #SL3466729
Source:
Dardengroupusa
Added: Aug 6
Changed: Aug 28
Last Checked: Aug 29 at 12:22PM
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 Think Real Estate
Investment Insights
Based on property information with market context.
This former motel property contains 7 bedrooms and 6 bathrooms within approximately 2,556 square feet. Constructed in 1960, the building previously operated in both motel and multifamily formats, offering a documented basis for evaluating hospitality, residential, workforce housing, or short-term rental applications. Any proposed use and zoning compliance should be independently verified by the buyer.
The property is located at 604 Fernwood St, Panama City Beach, FL 32407, just off Middle Beach Road. Front Beach Road and Back Beach Road are both nearby, with shopping, dining, attractions, and entertainment in the surrounding beach-area corridor. The existing room count and bathroom layout support review of multiple rental or redevelopment configurations, subject to applicable approvals.
The property is located at 604 Fernwood St, Panama City Beach, FL 32407, just off Middle Beach Road. Front Beach Road and Back Beach Road are both nearby, with shopping, dining, attractions, and entertainment in the surrounding beach-area corridor. The existing room count and bathroom layout support review of multiple rental or redevelopment configurations, subject to applicable approvals.
Key Highlights
- 7 bedrooms and 6 bathrooms across approximately 2,556 square feet
- Previously operated as both a motel and multifamily property
- Constructed in 1960
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
$24,921
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
3.83%
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%
$498,420
$498.4K
Cap Rate 7%
$356,014
$356.0K
Cap Rate 9%
$276,900
$276.9K
Market Conditions
NOI Build-Up for 2,556 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
$48.5K $18.96/SF
− Vacancy
−$3.2K −$1.23/SF
EGI
$45.3K $17.73/SF
− OpEx
−$20.4K −$7.98/SF
NOI
$24.9K $9.75/SF
Area
Bay County, FL
Vacancy
6.50%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
45.00%
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%
$498,420
Cap Rate 7%
$356,014
Cap Rate 9%
$276,900
Alternative Uses
Best Use
Apartment 5plus
$356.0K
$311.5K – $415.4K
NOI $24,921 @ 7.0% cap · market cap 3.83%
Second Best
Hotel Hospitality
$228.9K
$200.3K – $267.1K
NOI $16,026 @ 7.0% cap · market cap 2.47%
Theoretical Best
Office A
$744.7K
$651.6K – $868.9K
NOI $52,131 @ 7.0% cap · market cap 8.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
358
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32407, FL
14,366
Population
12,163
Households
1.2
Avg Household Size
41
Median Age
40%
College-Educated
96%
High-School Grad
14.9 sq mi
ZIP Area
964
Density / Sq Mi
$79,052
Median Household Income
$44,027
Median Earnings
$1,792
Median Rent
$403,500
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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- Beach Vacation PCB by Gigi — 11807 Front Beach Rd #1-2202, Panama City Beach, FL 32407
- Grand Panama Beach Resort by Emerald View Resorts — 11807 Front Beach Rd, Panama City Beach, FL 32407
- Grand Panama Tower 2-308 — 11800 Front Beach Rd Unit 2-308, Panama City Beach, FL 32407
Frequently Asked Questions
What type of property is this?
Motel - Former hospitality property with flexible room configuration near major beach-area roads, shopping, dining, attractions, and entertainment.
Where is this motel located?
The property is located at 604 Fernwood St Panama City Beach, FL.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 7 bedrooms and 6 bathrooms across approximately 2,556 square feet; Previously operated as both a motel and multifamily property; Constructed in 1960
