1712 Ashmun ST
12-Unit Motel + 4-Bed Residence | ~$27k/Unit | ~$66/Sq Ft
Marketing description
This offering presents the opportunity to acquire a 13-unit hospitality property at 1712 Ashmun Street in Sault Ste. Marie, Michigan, inclusive of an attached four-bedroom, two-bath single-family residence, at approximately $27k per unit. Comparable functioning motels in this market are currently trading at ~$60k per door, representing a significant discount to prevailing market value.
The property is being offered with a detailed 2027 pro forma projecting ~$165k in gross revenue and ~$78k 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 1712 Ashmun 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. 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 sustained workforce housing demand from tradespeople, engineers, contractors, and government personnel through at least 2030.
Short-term demand benefits from proximity to Mackinac Island, Les Cheneaux Islands, and Tahquamenon Falls — established leisure destinations generating consistent seasonal travel to the Upper Peninsula.
The property's attached single-family residence provides immediate income flexibility — it can be operated as owner-occupied housing, a long-term rental, or incorporated into the extended-stay model. The high-visibility Ashmun Street corridor location provides strong drive-up awareness well suited to both short-term hospitality and monthly rental operations.
Investors seeking greater scale may also acquire the sister property at 1707 Ashmun Street, available separately across the street, to establish a combined 34-unit workforce housing presence on this corridor for $799,000.
Investment highlights
- Exceptional Per-Unit Basis: Priced at approximately $27k per unit and $66 per square foot — comparable functioning motels in Sault Ste. Marie are trading at ~$60k per door
- Projected 2027 NOI of ~$78k: Based on a detailed short-term and long-term hybrid operating model with monthly pro forma
- Projected 2027 Gross Revenue of ~$165k: Blended income from motel rooms and stabilized long-term units
- Income Diversity: Property includes 12 motel rooms plus an attached four-bedroom, two-bath single-family residence — multiple revenue streams from a single acquisition
- 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 sellers' 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
- High-Visibility Corridor Location: Situated on the west side of Ashmun Street between Eighth and Ninth Avenue — strong drive-up exposure in a high-traffic area
- Portfolio Expansion Available: Sister property at 1707 Ashmun Street available for separate purchase directly across the street — combined acquisition of 34 units available at $799k
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