Building Details

Year built 1900

Listing Agency: NextHome Superior Living Show Phone

Listed By: Stephanie Jones · License #6?5?0?6?0?3?5?7?0?3,PersonLicenseNumber Show Phone

Added: Jul 16 Changed: Aug 4 Last Checked: Aug 12 at 12:06AM

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MLS# 50186436

Copyright © 2026 NextHome, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 5,200-square-foot assisted living facility is currently operating as a licensed adult foster care home, with current inspections and licenses transferable with the LLC. The main floor provides six bedrooms, two full bathrooms, accessible entries, common areas, and a large kitchen. A private two-bedroom, one-bath suite occupies the upper level, while the finished lower level includes another bedroom, office, and gathering area. Appliances and furnishings are included. The attached heated garage measures 24 by 48 feet and has 220 service.

The 0.25-acre property sits on a corner lot at 101 Kirkpatrick Avenue along M-35 in Palmer, Michigan. It has paved access and ample parking, with Marquette approximately 15 minutes away and Ishpeming and Negaunee also within the surrounding service area. Northern Michigan University, regional healthcare centers, and major employers are nearby. A Michigan DNR trail expansion is planned to reach Palmer in 2026, with the route described as one block from the property.

Key Highlights

• Currently operating as a licensed adult foster care home with current inspections and licenses transferable with the LLC
• 5,200 square feet on a 0.25‑acre corner lot along M‑35
• Main level includes 6 bedrooms, 2 full baths, common areas, large kitchen, and accessible entries

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$20,007

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

5.80%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$400,140 $400.1K

Cap Rate 7%

$285,814 $285.8K

Cap Rate 9%

$222,300 $222.3K

Market Conditions

NOI Build-Up for 5,200 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$93.6K $18.00/SF

− Vacancy

−$51.5K −$9.90/SF

EGI

$42.1K $8.10/SF

− OpEx

−$22.1K −$4.25/SF

NOI

$20.0K $3.85/SF

Area

Macomb County, MI

Vacancy

55.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

52.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$400,140

Cap Rate 7%

$285,814

Cap Rate 9%

$222,300

Alternative Uses

Best Use

Apartment 5plus

$697.6K

$610.4K – $813.9K (±1% cap)

NOI $48,834 @ 7.0% cap · market cap 14.15%

Second Best

Hotel Hospitality

$285.8K

$250.1K – $333.5K (±1% cap)

NOI $20,007 @ 7.0% cap · market cap 5.80%

Theoretical Best

Specialty Retail

$973.5K

$851.8K – $1.14M (±1% cap)

NOI $68,147 @ 7.0% cap · market cap 19.75%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Assisted living facilities

Lease Details

Turnkey business

Opportunity

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

27

Businesses Nearby

Explore this area Business Placement

Demographics for 49871, MI

476

Population

226

Households

2.1

Avg Household Size

44

Median Age

11%

College-Educated

92%

High-School Grad

16.7 sq mi

ZIP Area

29

Density / Sq Mi

$60,625

Median Household Income

$27,045

Median Earnings

$629

Median Rent

$75,600

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this assisted living facilities located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Assisted living facility - Licensed adult foster care property with multiple living areas, accessible entries, furnishings, and commercial zoning.

Where is this assisted living facility located?

The property is located at 101 Kirkpatrick Avenue Palmer, MI.

What is the asking price?

The asking price for this property is $345,000.

What are key features of this property?

This property features: Currently operating as a licensed adult foster care home with current inspections and licenses transferable with the LLC; 5,200 square feet on a 0.25‑acre corner lot along M‑35; Main level includes 6 bedrooms, 2 full baths, common areas, large kitchen, and accessible entries