4930 W County Rd 24 Room Hotel Dunnigan, CA 95937 $2,500,000 ($104,167/Room) 9.85% Cap Rate

Team Singh is pleased to present a rare opportunity to acquire a three-income-stream, highway-commercial asset with direct Interstate 5 frontage at the Dunnigan interchange — one of Northern California's most active I-5 growth nodes. Situated on ±5.0 acres of Highway Commercial-zoned land at the junction of I-5 and I-505, this offering includes a 25-room motel with on-site manager's quarters, a freestanding restaurant building, and a freestanding mechanic shop building — all on one parcel, all generating income today.
THREE INCOME STREAMS, ONE PARCEL This is not a single-use motel play. The property delivers three distinct, diversified revenue sources:
25-Room Motel + Manager's Quarters — Currently operating at an ADR of $85–$90, with clear room-rate and revenue-management upside for a hands-on owner-operator.
Restaurant Building — Freestanding structure, currently leased at $2,875/month ($34,500/year).
Mechanic Shop Building — Freestanding structure, currently leased at $2,500/month ($30,000/year).
Together, the restaurant and mechanic shop leases alone contract $64,500 per year in income that is independent of motel performance — a built-in income floor beneath the offering price, before a single room is ever rented.
LOCATION: THE I-5 / I-505 CROSSROADS Dunnigan sits directly at the interchange of Interstate 5 and Interstate 505 — the primary connector between the Sacramento/Bay Area metro and the I-5 spine running north to Redding and south through the heart of the Central Valley. This is a structural, permanent traffic generator that does not depend on local population growth to perform: freight, commuter, and long-haul travel traffic passes through this exact interchange every day, with nearby I-5 traffic counts reported at over 35,000 vehicles per day. Sacramento is roughly 40 miles to the southeast, and the surrounding Yolo County economy is anchored by agriculture, warehousing and distribution, and UC Davis-linked technology and biotech industries — Dunnigan already carries an active local logistics and warehousing employment base that supports contractor and crew lodging demand for the motel.
A GROWTH NODE IN MOTION The Dunnigan I-5 interchange is in the middle of its most active entitlement cycle in over a decade, according to Yolo County planning records:
Dunnigan Truck & Travel Center (100 Acres) — Yolo County approved a Notice of Determination for a 100-acre truck and travel center at the I-5/County Road 8 interchange, entitled for vehicle fueling and EV charging, a convenience store, restaurants, a truck dealership, truck repair and servicing, travel-related retail, and a 60-room motel.
2024 Dunnigan Community Plan (1,260 Acres, ~2,000 Jobs) — Yolo County adopted an updated Community Plan as the long-range development guide for Dunnigan, addressing land use and zoning across roughly 1,260 acres centered on the I-5/I-505 interchange, with a stated long-term jobs target of approximately 2,000.
West Dunnigan Specific Plan (~215 Acres) — A planned growth area split between roughly 135 acres of residential use and 20 acres of local commercial closest to I-5, bringing new rooftops and new local commercial and service demand over the next several years.
Yolo County 2026 Pavement Preservation Project ($5.5M) — An active, county-wide road improvement program upgrading infrastructure in and around Dunnigan through 2026.
A separate 20-acre travel-center entitlement in the same interchange area (fueling, convenience market, tire barn, restaurants, and a planned 80-room hotel) further underscores the volume of highway-commercial capital targeting this exact stretch of I-5.
Multiple, independently entitled highway-commercial projects — totaling well over 100 acres and hundreds of new rooms, fueling positions, and retail bays — are converging on the Dunnigan interchange over roughly the same window. This offering is an existing, cash-flowing asset already in place ahead of that wave.