Sterling Motel 1507 W Oakland Ave 30 Room Hotel Austin, MN 55912 $770,000 ($25,667/Room)

Property Highlights:
Type: 30-room motel with an approximately 3,200-square-foot single-family home on site.
Development Opportunity: This property presents a compelling value-add opportunity for investors with vision. While currently operating as a motel, the site may offer future potential for conversion to alternative residential uses—such as transitional housing, workforce housing, or community-based care—subject to buyer investigation and approvals.
Sample Renovation Scenario (Hypothetical Only): A potential redevelopment concept includes a $400,000 renovation budget—$10,000 per room for upgrades and $100,000 to convert the house into a shared common area with a commercial kitchen. This hypothetical model is provided solely for discussion and has not been reviewed, approved, or endorsed by any local or state agency.
Financial Illustration (For Informational Purposes Only):
Projected Gross Revenue: $378,000/year (based on $1,500/month per bed at 70% occupancy)
Estimated Net Operating Income (NOI): $151,200/year
Illustrative Value: At a 12% cap rate, this model suggests a post-renovation valuation of ~$1,260,000
Additional Features:
The on-site home may serve as a common area, staff housing, or potential additional revenue stream (depending on use).
Ample parking and existing room layout offer flexible design options.
Important Disclaimers:
This property is being sold as-is. All financial figures, renovation concepts, and valuation estimates are entirely hypothetical and for illustrative purposes only. No representations are made regarding permitted use, future income, or suitability for any specific program or licensing model.
Buyers must conduct independent due diligence, including but not limited to zoning, licensing, renovation feasibility, and regulatory requirements at the local, state, and federal level.
There is no guarantee that any future use—such as a sober living facility—would be allowed or approved.