Mixed-Use Commercial
For Sale
$900,000
1620 Madison Avenue SE, Grand Rapids, MI 49507
Commercial Sale, Grand Rapids, MI
Property Size4,000 SF
Lot Size0.09 Acres
Price / SF$225
Days on Market916
Property Features for 1620 Madison Avenue SE
General Information
Property type
Commercial Sale
Property subtype
Retail
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Elementary school district
Grand Rapids
Middle school district
Grand Rapids
High school district
Grand Rapids
Directions
US 131 to Hall Street SE, E on Hall and S on Madison to property
Subdivision
Grand Rapids - G
Standard status
Active
APN
41-18-06-401-025
Size
4,000 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Year
2023
Tax Description
See Attached Legal Description
Tax Annual Amount
8060
Legal Description
See Attached Legal Description
Utilities
Heating system
Forced Air
Building Details
Year built
2014
Floors in Building
2
Number of units
2
Listing Agency:
LCB & Associates Realty
(616) 485-2795
Listed By:
Latasha Black · License #6502431261
(616) 784-2360
Added: Mar 15, 2024
Changed: Sep 12
Last Checked: Sep 16 at 4:06AM
MLS# 24012768
Copyright © 2026 Michigan Regional Information Center, LLC. 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 mixed-use commercial building was constructed in 2014 and is identified for office and showroom functions. The interior includes two bathrooms, while forced-air heating serves the building. The property occupies a 0.09-acre lot and is located at 1620 Madison Avenue SE in Grand Rapids, Michigan. Its commercial configuration supports a range of office, display, and general business applications, subject to buyer verification of measurements and intended use.
Key Highlights
- Mixed‑use building identified for office and showroom functions
- Constructed in 2014
- Located at 1620 Madison Avenue SE, Grand Rapids, MI 49507
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
$57,983
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
6.44%
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%
$1,159,660
$1.2M
Cap Rate 7%
$828,329
$828.3K
Cap Rate 9%
$644,256
$644.3K
Market Conditions
NOI Build-Up for 4,000 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
$87.8K $21.96/SF
− Vacancy
−$5.0K −$1.25/SF
EGI
$82.8K $20.71/SF
− OpEx
−$24.8K −$6.21/SF
NOI
$58.0K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
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%
$1,159,660
Cap Rate 7%
$828,329
Cap Rate 9%
$644,256
Alternative Uses
Best Use
Retail
$828.3K
$724.8K – $966.4K
NOI $57,983 @ 7.0% cap · market cap 6.44%
Second Best
Mixed Use
$630.9K
$552.0K – $736.0K
NOI $44,160 @ 7.0% cap · market cap 4.91%
Theoretical Best
Specialty Retail
$928.3K
$812.3K – $1.08M
NOI $64,980 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
752
Businesses Nearby
Explore this area
Business Placement
Demographics for 49507, MI
38,137
Population
13,773
Households
2.8
Avg Household Size
30
Median Age
27%
College-Educated
78%
High-School Grad
5.5 sq mi
ZIP Area
6,934
Density / Sq Mi
$56,578
Median Household Income
$34,939
Median Earnings
$1,114
Median Rent
$179,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office and showroom functions are identified within a mixed-use commercial building built in 2014.
Where is this mixed-use property located?
The property is located at 1620 Madison Avenue SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Mixed‑use building identified for office and showroom functions; Constructed in 2014; Located at 1620 Madison Avenue SE, Grand Rapids, MI 49507
