Renovated Mixed-Use Building with
For Sale
$599,900
116 Tecumseh Street, Dundee, MI 48131
COMMERCIAL - Dundee, MI
Property Size2,600 SF
Lot Size0.03 Acres
Price / SF$230.73
Days on Market65
Property Features for 116 Tecumseh Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Mixed Use,Commercial
Zoning description
Mixed Use, Commercial
Parking features
Parking Lot
Patio and Porch features
Patio
Interior features
Living Quarters Attached, Restroom(s), Separate Meters
Exterior features
Deck/Patio
Lot features
Main Street, Downtown Dev Authority
Subdivision
Dundee Twp (58004)
Standard status
Active
Size
2,600 SF
Lot size
0.03 Acres
Taxes and HOA fees
Tax Annual Amount
3613
Utilities
Heating system
Forced Air
Water source
Public
Listing Agency:
Key Realty One LLC - S. Dixie
(734) 790-4650
Listed By:
Theresa Barton · License #6501328287
(734) 735-5228
Added: Jun 9
Changed: Aug 4
Last Checked: Aug 12 at 12:06AM
MLS# 50210696
Copyright © 2026 Southeastern Border Association of REALTORS®. 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.
Located at 116 Tecumseh Street in downtown Dundee, this mixed-use building has been completely renovated down to the studs and redone. The main level includes a commercial unit that is currently empty, and the listing photos are virtually staged. A basement is available for lease as part of the main-floor commercial section. Above the commercial space are two rented apartments, each with 2 bedrooms and 1 bathroom, and both include laundry hook-ups.
The property offers a shared patio area behind the building and access to use of 2 city parking lots, along with convenient street parking. The property is listed under Mixed Use, Commercial zoning.
Overall, the configuration supports an owner-operator or investor strategy with a ready-to-occupy (or re-tenant) commercial frontage paired with two in-place residential rental units.
The property offers a shared patio area behind the building and access to use of 2 city parking lots, along with convenient street parking. The property is listed under Mixed Use, Commercial zoning.
Overall, the configuration supports an owner-operator or investor strategy with a ready-to-occupy (or re-tenant) commercial frontage paired with two in-place residential rental units.
Key Highlights
- Mixed‑use downtown Dundee building with main‑level commercial space plus two residential units above
- Two income‑producing 2‑bedroom, 1‑bath apartments above the commercial space, both currently rented
- Laundry hookups in both upstairs units
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
$35,100
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
5.85%
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%
$702,000
$702.0K
Cap Rate 7%
$501,429
$501.4K
Cap Rate 9%
$390,000
$390.0K
Market Conditions
NOI Build-Up for 2,600 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
$62.4K $24.00/SF
− Vacancy
−$6.2K −$2.40/SF
EGI
$56.2K $21.60/SF
− OpEx
−$21.1K −$8.10/SF
NOI
$35.1K $13.50/SF
Area
Monroe County, MI
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$702,000
Cap Rate 7%
$501,429
Cap Rate 9%
$390,000
Alternative Uses
Best Use
Industrial
$2.21M
$1.93M – $2.58M
NOI $154,585 @ 7.0% cap · market cap 25.77%
Second Best
Mixed Use
$501.4K
$438.8K – $585.0K
NOI $35,100 @ 7.0% cap · market cap 5.85%
Theoretical Best
Warehouse
$2.68M
$2.35M – $3.13M
NOI $187,710 @ 7.0% cap · market cap 31.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
202
Businesses Nearby
Explore this area
Business Placement
Demographics for 48131, MI
8,126
Population
3,838
Households
2.1
Avg Household Size
37
Median Age
33%
College-Educated
95%
High-School Grad
50.1 sq mi
ZIP Area
162
Density / Sq Mi
$81,386
Median Household Income
$47,535
Median Earnings
$1,112
Median Rent
$246,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Renovated mixed-use building with main-floor commercial space and two rented 2-bedroom apartments above.
Where is this mixed-use property located?
The property is located at 116 Tecumseh Street Dundee, MI.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: Mixed‑use downtown Dundee building with main‑level commercial space plus two residential units above; Two income‑producing 2‑bedroom, 1‑bath apartments above the commercial space, both currently rented; Laundry hookups in both upstairs units
