Renovated Motel Near
For Sale
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620 W Colorado Ave, Colorado Springs, CO 80905
Well-maintained, renovated 29-key motel near downtown Colorado Springs.
Property Size20,806 SF
Lot Size0.70 Acres
Price / SF$93.72
Days on Market794
Property Features for 620 W Colorado Ave
General Information
Standard status
Active
Size
20,806 SF
Lot size
0.70 Acres
Property subtype
Hospitality
Investment Type
Owner/User
Building Details
Year Built
1930
Year Renovated
2023
Stories
2
Listing Agency:
RE/MAX Leaders | Commercial Division
Listed By:
Jae Kim · License #CO 320502
Source:
Crexi
Added: Jul 3, 2024
Changed: Sep 2
Last Checked: Sep 2 at 6:10AM
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 RE/MAX Leaders | Commercial Division
Investment Insights
Based on property information with market context.
This is a well-maintained, independent motel situated in a prime location within walking distance of downtown Colorado Springs. The motel was fully renovated in 2023-2024. The property features 29 keys and manager's living quarters. The two-story building has a solid brick construction. The building size is 20,806 square feet and the lot size is 30,275 square feet.
Key Highlights
- Prime location within walking distance of Downtown Colorado Springs.
- Fully renovated in 2023‑2024.
- Independent motel with 29 keys.
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
$80,644
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
4.14%
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%
$1,612,880
$1.6M
Cap Rate 7%
$1,152,057
$1.2M
Cap Rate 9%
$896,044
$896.0K
Market Conditions
NOI Build-Up for 20,806 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
$199.7K $9.60/SF
− Vacancy
−$30.0K −$1.44/SF
EGI
$169.8K $8.16/SF
− OpEx
−$89.1K −$4.28/SF
NOI
$80.6K $3.88/SF
Area
Colorado Springs, CO
Vacancy
15.00%
Lease Rate
$9.60 /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%
$1,612,880
Cap Rate 7%
$1,152,057
Cap Rate 9%
$896,044
Alternative Uses
Best Use
Hotel Hospitality
$1.15M
$1.01M – $1.34M
NOI $80,644 @ 7.0% cap · market cap 4.14%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.11M
$3.60M – $4.79M
NOI $287,622 @ 7.0% cap · market cap 14.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,490
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80905, CO
17,592
Population
8,933
Households
2
Avg Household Size
38
Median Age
39%
College-Educated
92%
High-School Grad
5.1 sq mi
ZIP Area
3,449
Density / Sq Mi
$64,496
Median Household Income
$40,876
Median Earnings
$1,449
Median Rent
$349,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Well-maintained, renovated 29-key motel near downtown Colorado Springs.
Where is this motel located?
The property is located at 620 W Colorado Ave Colorado Springs, CO.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: Prime location within walking distance of Downtown Colorado Springs.; Fully renovated in 2023‑2024.; Independent motel with 29 keys.
