Lakefront Resort with
For Sale
$1,399,900
8949 Lakeshore Rd, Lexington, MI 48450
COM/IND/BUS OPP, Lexington, MI
Property Size9,290 SF
Lot Size1.30 Acres
Price / SF$150.69
Days on Market51
Property Features for 8949 Lakeshore Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Rooms
Basement
Parking features
Parking Lot
Patio and Porch features
Patio
Exterior features
Deck/Patio, Fenced Yard
Fencing
Fenced
Lot features
Main Street
Subdivision
Worth Twp (76026)
Standard status
Active
APN
261-031-100-100-00
Size
9,290 SF
Lot size
1.30 Acres
Taxes and HOA fees
Tax Annual Amount
8892
Utilities
Heating system
Zoned, Heat Pump (Heating), Forced Air
Cooling system
Zoned, Heat Pump, Attic Fan, Ceiling Fan(s), Central Air
Water source
Public, Private
Water front
1
Amenities
sandy beach
gameroom
yum-yum shop
Building Details
Roof type
Shingle
Listing Agency:
Town & Country Realty-Lexington
(810) 359-5000
Listed By:
Kristin Gray
(810) 327-2300
Added: Jul 25
Changed: Sep 12
Last Checked: Sep 13 at 2:06PM
MLS# 50216208
Copyright © 2026 Multiple Listing Service MiRealSource. 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.
This seasonal resort occupies 1.3 acres along Lake Huron, with 100 feet of lakefront and a sandy beach providing direct water access. The hospitality operation includes 11 cottages, a game room, and a yum-yum shop, along with a park-like outdoor setting.
A beautifully updated residential home of more than 2,400 square feet is included, together with a three-car garage. The property also features a parking lot, patio, deck, fenced yard, public and private water sources, and a shingle roof. Family ownership and operation has continued for 47 years.
A beautifully updated residential home of more than 2,400 square feet is included, together with a three-car garage. The property also features a parking lot, patio, deck, fenced yard, public and private water sources, and a shingle roof. Family ownership and operation has continued for 47 years.
Key Highlights
- Lake Huron resort with 100' of lakefront and sandy beach access
- 11 seasonal cottages included in the hospitality operation
- Updated residential home exceeding 2400 sq. ft.
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
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Current Use
Lease Details
Turnkey business
Opportunity
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
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Frequently Asked Questions
What type of property is this?
Resort - Seasonal hospitality property with cottages, recreational space, and an updated residential component.
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: Lake Huron resort with 100' of lakefront and sandy beach access; 11 seasonal cottages included in the hospitality operation; Updated residential home exceeding 2400 sq. ft.
