Lake Huron Seasonal
For Sale
$1,399,900
8949 LAKESHORE RD, Lexington, MI 48450
Eleven cottages accompany a sandy beach, game room, shop, and updated residence for a multifaceted hospitality operation.
Property Size9,290 SF
Price / SF$150.69
Days on Market50
Property Features for 8949 LAKESHORE RD
General Information
Standard status
Active
Size
9,290 SF
Property subtype
Industrial
Amenities
sandy beach
gameroom
yum-yum shop
Central Air, Heat Pump, Ceiling Fan(s), Attic Fan, Dual
3
Concrete, Carpet, Ceramic
Shingle
100600
Listing Agency:
Town & Country Realty-Lexington
(810) 359-5000
Listed By:
Kristin Gray
(810) 327-2300
Source:
Xome
Added: Jul 23
Changed: Sep 9
Last Checked: Sep 9 at 5:32AM
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 Town & Country Realty-Lexington
Investment Insights
Based on property information with market context.
This seasonal resort occupies a Lake Huron waterfront setting with 100 feet of shoreline, a sandy beach, and convenient water access. The property includes 11 cottages, a game room, and a yum-yum shop, along with an updated 2,400+ square foot residential home. The residence has a 3-car garage and includes central air, a heat pump, ceiling fans, and an attic fan.
Located at 8949 Lakeshore Road in Lexington, the property combines guest accommodations, recreational amenities, retail space, and an on-site residence. The resort has been family owned and operated for 47 years, providing an established hospitality configuration for continued seasonal use.
Located at 8949 Lakeshore Road in Lexington, the property combines guest accommodations, recreational amenities, retail space, and an on-site residence. The resort has been family owned and operated for 47 years, providing an established hospitality configuration for continued seasonal use.
Key Highlights
- 100 feet of Lake Huron waterfront
- 11 cottages included in the seasonal resort
- Sandy beach with easy water access
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
$49,643
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
3.55%
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%
$992,860
$992.9K
Cap Rate 7%
$709,186
$709.2K
Cap Rate 9%
$551,589
$551.6K
Market Conditions
NOI Build-Up for 9,290 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
$139.4K $15.00/SF
− Vacancy
−$34.8K −$3.75/SF
EGI
$104.5K $11.25/SF
− OpEx
−$54.9K −$5.91/SF
NOI
$49.6K $5.34/SF
Area
Sanilac 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%
$992,860
Cap Rate 7%
$709,186
Cap Rate 9%
$551,589
Alternative Uses
Best Use
Hotel Hospitality
$709.2K
$620.5K – $827.4K
NOI $49,643 @ 7.0% cap · market cap 3.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.97M
$1.73M – $2.30M
NOI $138,110 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 48450, MI
4,199
Population
4,113
Households
1
Avg Household Size
55
Median Age
23%
College-Educated
95%
High-School Grad
21.9 sq mi
ZIP Area
192
Density / Sq Mi
$58,297
Median Household Income
$33,892
Median Earnings
$855
Median Rent
$200,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - Eleven cottages accompany a sandy beach, game room, shop, and updated residence for a multifaceted hospitality operation.
Where is this resort located?
The property is located at 8949 LAKESHORE RD Lexington, MI.
What is the asking price?
The asking price for this property is $1,399,900.
What are key features of this property?
This property features: 100 feet of Lake Huron waterfront; 11 cottages included in the seasonal resort; Sandy beach with easy water access
