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    615 Us Highway 10 Detroit Lakes, MN 56501
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    615 Us Highway 10 Detroit Lakes, MN 56501

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    • Hospitality properties
    Off-Market
    Value Estimations
    Cap Rate Potential
    Location Intelligence

    Current Use by Public Records

    • Quality Inn & Suites / Hotel & Motel
    • American Auto Transport / Trucking Company

    Property Details for 615 Us Highway 10

    Year built
    1953
    Property type
    Hospitality properties
    Property subtype
    Hotels

    Description

    This fee-simple, 58-key Quality Inn & Suites in Detroit Lakes, Minnesota, presents a compelling investment opportunity. Built in 1953 and renovated in 2019, this two-building, two-story hotel boasts a strong NOI of $289,547 and an 8.77% cap rate, commanding an asking price of $3,300,000. Situated on 615 US Hwy 10, the property benefits from its location in a tourism-driven area known as "Lakes Country," attracting visitors year-round. Summer activities include boating, fishing, golfing (eight courses within six miles), and access to a nearby city beach. The annual WE Fest country music festival further boosts occupancy. Winter activities such as skiing, snowboarding, and snowmobiling at Detroit Mountain Recreation Area provide additional revenue streams. The hotel itself offers numerous amenities, including a 133-foot waterslide, whirlpool, swimming pool, kiddie pool with splash pad, complimentary hot breakfast, a business center, meeting space for up to 60 guests, and a fitness center. Guest rooms feature flat-screen TVs, microwaves, refrigerators, coffee makers, hair dryers, irons, premium bedding, USB charging stations, and curved shower curtains. The hotel's proximity to downtown Detroit Lakes (less than 10 minutes away) provides easy access to local restaurants and shops. This property offers significant value-add potential through enhanced operational management strategies, promising a strong return on investment.

    Value Estimations

    based on Realmo’s proprietary methodology

    • AI approach

    • CAP approach

    • Comparable approach

    • Alternative Use

    Location Insight

    • Map
    • Local Demand
    City
    Detroit Lakes
    County
    Becker
    State
    Minnesota
    Longitude
    -95.8283
    Latitude
    46.8112

    Comparable in this City

    • Value Estimation by Request
      24,442 SF

      777 Us-10

      Hotels • 24,442 SF
      777 Us-10, Detroit Lakes, MN 56501
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    • Value Estimation
      $720,000
      38,723 SF

      102 Lk Dr

      HOTEL • 38,723 SF
      102 Lk Dr, Detroit Lakes, MN 56501-3916
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    • Value Estimation
      $605,000
      30,630 SF

      1175 Hwy 10th E

      HOTEL • 30,630 SF
      1175 Hwy 10th E, Detroit Lakes, MN 56501
      View Details
    • Value Estimation by Request
      1,720 SF

      624 Lk Dr

      HOTEL • 1,720 SF
      624 Lk Dr, Detroit Lakes, MN 56501-3830
      View Details
    • Value Estimation
      $1,515,000
      14,280 SF

      400 Morrow Ave

      HOTEL • 14,280 SF
      400 Morrow Ave, Detroit Lakes, MN 56501-2212
      View Details
    • Value Estimation by Request
      2,568 SF

      29409 170th St

      HOTEL • 2,568 SF
      29409 170th St, Detroit Lakes, MN 56501-7570
      View Details

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    Detroit Lakes, MN 56501
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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