Vintage Motel with Income
For Sale
Contact for pricing
663 E Cloverland Dr, Ironwood, MI 49938
Investment opportunity: motel with houses in Ironwood, Michigan.
Property Size8,000 SF
Price / SF$64.88
Days on Market774
Property Features for 663 E Cloverland Dr
General Information
Standard status
Active
Size
8,000 SF
Property subtype
Hospitality
Building Details
Year Built
1960
Year Renovated
2019
Buildings
5
Stories
1
Listing Agency:
Coldwell Banker Commercial AMH
(631) 903-3739
Listed By:
Anthony Briguglio · License #10491212878
Source:
Crexi
Added: Jul 9, 2024
Changed: Aug 21
Last Checked: Jul 16 at 6:25AM
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 Coldwell Banker Commercial AMH
Investment Insights
Based on property information with market context.
Located in Ironwood, MI, 663 E. Cloverland Dr presents an investment opportunity. Constructed in 1960, the property includes five buildings, with three houses on the premises. The total area spans 34,848 square feet, including 8,000 square feet of building space. The single-story motel features 8 rooms, an office, and a basement. The property offers potential for customization or expansion.
Key Highlights
- Income‑generating property with immense growth possibilities.
- Large lot size: 34,848 sq. ft.
- Five buildings including three houses on the property.
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
$42,750
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
8.24%
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%
$855,000
$855.0K
Cap Rate 7%
$610,714
$610.7K
Cap Rate 9%
$475,000
$475.0K
Market Conditions
NOI Build-Up for 8,000 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
$120.0K $15.00/SF
− Vacancy
−$30.0K −$3.75/SF
EGI
$90.0K $11.25/SF
− OpEx
−$47.3K −$5.91/SF
NOI
$42.8K $5.34/SF
Area
Gogebic 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%
$855,000
Cap Rate 7%
$610,714
Cap Rate 9%
$475,000
Alternative Uses
Best Use
Hotel Hospitality
$610.7K
$534.4K – $712.5K
NOI $42,750 @ 7.0% cap · market cap 8.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.70M
$1.49M – $1.98M
NOI $118,932 @ 7.0% cap · market cap 22.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
299
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49938, MI
7,340
Population
4,728
Households
1.6
Avg Household Size
49
Median Age
23%
College-Educated
95%
High-School Grad
225.6 sq mi
ZIP Area
33
Density / Sq Mi
$44,379
Median Household Income
$34,553
Median Earnings
$590
Median Rent
$95,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Investment opportunity: motel with houses in Ironwood, Michigan.
Where is this motel located?
The property is located at 663 E Cloverland Dr Ironwood, MI.
What is the asking price?
The asking price for this property is $519,000.
What are key features of this property?
This property features: Income‑generating property with immense growth possibilities.; Large lot size: 34,848 sq. ft.; Five buildings including three houses on the property.
