Flat Rock Resort on Highland
For Sale
$5,300,000
86 Lily Pad Lane, Flat Rock, NC 28731
Established resort with expansion potential in Flat Rock, North Carolina.
Property Size60,769 SF
Lot Size26.00 Acres
Price / SF$87.23
Days on Market168
Property Features for 86 Lily Pad Lane
General Information
Standard status
Active
Size
60,769 SF
Lot size
26.00 Acres
Property subtype
Resort
Building Details
Building Size
60,769 SF
Listing Agency:
(828) 230-5263
Listed By:
Debbie Lane · License #NC #122957
(828) 230-5263
Source:
Deweypa
Added: Mar 6
Changed: Aug 17
Last Checked: Aug 20 at 5:21AM
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 Debbie Lane
Investment Insights
Based on property information with market context.
Located in historic Flat Rock, North Carolina, Highland Lake is an established leisure destination. This hospitality asset offers immediate operational income with potential to add income streams from special events, weddings, and corporate events, leveraging the variety of structures on the property. The resort includes 54 keys across cottages, cabins, and inn-style lodging. The total building footprint is 60,759 square feet, with expansion potential. The property features an award-winning restaurant with a chef’s kitchen and private dining areas. Meeting and conference rooms can accommodate up to 200 guests. Resort amenities include a pool, tennis courts, pavilion, and office/admin buildings. The 26-acre property allows for further development. Significant upside exists via repositioning, branding, and programming diversification.
Key Highlights
- 26 Acres on Highland Lake in Historic Flat Rock, NC
- 54 Keys across cottages, cabins, and inn‑style lodging
- Award‑Winning Restaurant with chef’s kitchen and private dining areas
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
$367,106
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
6.93%
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%
$7,342,120
$7.3M
Cap Rate 7%
$5,244,371
$5.2M
Cap Rate 9%
$4,078,956
$4.1M
Market Conditions
NOI Build-Up for 60,759 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
$911.4K $15.00/SF
− Vacancy
−$138.5K −$2.28/SF
EGI
$772.9K $12.72/SF
− OpEx
−$405.7K −$6.68/SF
NOI
$367.1K $6.04/SF
Area
Henderson County, NC
Vacancy
15.20%
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%
$7,342,120
Cap Rate 7%
$5,244,371
Cap Rate 9%
$4,078,956
Alternative Uses
Best Use
Hotel Hospitality
$5.24M
$4.59M – $6.12M
NOI $367,106 @ 7.0% cap · market cap 6.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$20.25M
$17.72M – $23.62M
NOI $1,417,386 @ 7.0% cap · market cap 26.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 28731, NC
8,806
Population
4,417
Households
2
Avg Household Size
53
Median Age
37%
College-Educated
91%
High-School Grad
33.1 sq mi
ZIP Area
266
Density / Sq Mi
$65,882
Median Household Income
$35,957
Median Earnings
$947
Median Rent
$361,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Resort - Established resort with expansion potential in Flat Rock, North Carolina.
Where is this resort located?
The property is located at 86 Lily Pad Lane Flat Rock, NC.
What is the asking price?
The asking price for this property is $5,300,000.
What are key features of this property?
This property features: 26 Acres on Highland Lake in Historic Flat Rock, NC; 54 Keys across cottages, cabins, and inn‑style lodging; Award‑Winning Restaurant with chef’s kitchen and private dining areas
