Building Details

Buildings 2

Stories 1

Units 24

Listing Agency: c**@careycommercial.com Show Phone

Listed By: Chuck Show Phone

Added: Dec 25, 2024 Changed: Mar 16

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Investment Insights

Based on property information with market context.

This established hospitality property features a 24-room motel on a 1.42-acre lot. The property is located in South Yarmouth, Massachusetts, providing access to beaches, dining, and attractions. The building has a total size of 5,855 square feet. In addition to the motel, the property includes a former indoor pool house, currently used for storage, with potential for future development. The motel offers guest accommodations and is positioned as a hospitality asset in a tourist destination.

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

$73,422

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

3.92%

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%

$1,468,440 $1.5M

Cap Rate 7%

$1,048,886 $1.0M

Cap Rate 9%

$815,800 $815.8K

Market Conditions

NOI Build-Up for 5,855 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

$175.7K $30.00/SF

− Vacancy

−$21.1K −$3.60/SF

EGI

$154.6K $26.40/SF

− OpEx

−$81.2K −$13.86/SF

NOI

$73.4K $12.54/SF

Area

Barnstable County, MA

Vacancy

12.00%

Lease Rate

$30.00 /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%

$1,468,440

Cap Rate 7%

$1,048,886

Cap Rate 9%

$815,800

Alternative Uses

Best Use

Hotel Hospitality

$1.05M

$917.8K – $1.22M (±1% cap)

NOI $73,422 @ 7.0% cap · market cap 3.92%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.39M

$2.09M – $2.78M (±1% cap)

NOI $167,016 @ 7.0% cap · market cap 8.91%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Hospitality properties

Location Intelligence

Trade Area within ½ mile

221

Businesses Nearby

Explore this area Business Placement

Demographics for 02664, MA

9,935

Population

7,185

Households

1.4

Avg Household Size

55

Median Age

38%

College-Educated

95%

High-School Grad

7.0 sq mi

ZIP Area

1,419

Density / Sq Mi

$78,796

Median Household Income

$43,285

Median Earnings

$1,692

Median Rent

$479,400

Median Home Value

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Frequently Asked Questions

What type of property is this?

Hospitality property - 1.42 Acres with motel and a former indoor pool house used for storage.

Where is this hospitality property located?

The property is located at 759 MA-28 Yarmouth, MA.

What is the asking price?

The asking price for this property is $1,875,000.