1707 Ashmun ST
21-Unit Motel | ~$21.4k/Unit | Projected NOI of ~$120k
Marketing description
This offering presents the opportunity to acquire a 21-unit motel at 1707 Ashmun Street in Sault Ste. Marie, Michigan at ~$21.4k per unit — a significant discount to the ~$60k per door that comparable functioning motels are currently trading for in this market.
The property is being offered with a detailed 2027 pro forma projecting ~$230k in gross revenue and ~$120k in net operating income, based on a short-term and long-term hybrid operating model. This is not a speculative projection. The sellers currently operate a 50-unit property in Cedarville, Michigan — 30 minutes south — using the same hybrid approach, and that asset generated over $665k in revenue and more than $300k in NOI in 2025. The Ashmun Street pro forma is built on comparable rate assumptions.
The Sault Ste. Marie rental market is severely supply-constrained. To the sellers' knowledge, there are currently zero rental units available in the market at or below $750 per month — a rate that was achievable even in the property's worst units as recently as summer 2025. Long-term demand is anchored by Lake Superior State University and a chronically undersupplied housing stock. Near-term demand is further supported by the $3.22 billion Soo Locks expansion project, which is driving workforce housing demand from tradespeople and contractors through at least 2030.
Short-term demand benefits from the property's proximity to Mackinac Island, Les Cheneaux Islands, and Tahquamenon Falls — established leisure destinations that generate consistent seasonal travel to the region.
The property is currently vacant and undergoing active renovation, with a new flat roof already installed. The seller has absorbed the most capital-intensive expenditure, positioning an incoming operator to focus on completing finishes and achieving stabilization. Based on the projected NOI and prevailing cap rates for this asset class, the sellers project an after-repair value of $1M+ upon stabilization.
Investors seeking greater scale may also acquire the sister property at 1712 Ashmun Street, available separately across the street, to establish a combined workforce housing presence on this corridor.
Investment highlights
- Priced at a Significant Discount: Comparable functioning motels in Sault Ste. Marie are trading at ~$60k per door — this offering is priced at ~$21.4k per door
- Projected 2027 NOI of ~$120k: Based on a short-term/long-term hybrid operating model with detailed monthly pro forma
- Projected 2027 Gross Revenue of ~$230k Blended income from motel rooms and stabilized long-term units
- Proven Hybrid Model: Operators currently run a comparable 50-unit property in Cedarville, 30 minutes south, that achieved $665k+ in 2025 revenue and $300k+ in NOI using the same operating approach
- Zero Rental Vacancy in the Market: To the operator's knowledge, there are no available rentals in Sault Ste. Marie at or below $750/month — the absolute floor of the market
- $3.22B Federal Demand Catalyst: The Soo Locks expansion project drives supplemental workforce housing demand through at least 2030
- New Flat Roof Installed: Significant capital expenditure already absorbed; active daily renovations underway
- Projected ARV of $1M+: Substantial value creation opportunity relative to the $450k asking price
- Portfolio Expansion Available: Sister property at 1712 Ashmun Street available for separate purchase directly across the street
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