Mixed-Use Office
For Sale
$400,000
1628 Madison Avenue SE, Grand Rapids, MI 49507
COMMERCIAL - Grand Rapids, MI
Property Size3,168 SF
Lot Size0.07 Acres
Price / SF$126.26
Days on Market892
Property Features for 1628 Madison Avenue SE
General Information
Property type
Commercial Sale
Property subtype
Retail
Bathrooms
1
Full bathrooms
1
Rooms
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, S on Madison to property
Subdivision
Grand Rapids - G
Standard status
Active
APN
41-18-06-401-004
Size
3,168 SF
Lot size
0.07 Acres
Taxes and HOA fees
Tax Year
2023
Tax Description
LOTS 7, 8 & 9 BLK 1* WESTON & MEIGS REPLATTED SECOND ADDITION
Tax Annual Amount
1403
Legal Description
LOTS 7, 8 & 9 BLK 1* WESTON & MEIGS REPLATTED SECOND ADDITION
Utilities
Heating system
Forced Air
Building Details
Year built
1936
Floors in Building
1
Number of units
1
Listing Agency:
LCB & Associates Realty
(616) 485-2795
Listed By:
Latasha Black · License #6502431261
(616) 485-2795
Added: Mar 15, 2024
Changed: Aug 4
Last Checked: Aug 23 at 4:06PM
MLS# 24012772
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 property at 1628 Madison Avenue SE in Grand Rapids provides a combination of office and showroom space. The building dates to 1936 and includes a bathroom, supporting a range of general commercial configurations subject to buyer verification of measurements.
The property occupies a 0.07-acre site in Kent County and is served by forced-air heating. Its office-showroom format offers a defined commercial setting for businesses seeking space that can accommodate both administrative and customer-facing functions.
The property occupies a 0.07-acre site in Kent County and is served by forced-air heating. Its office-showroom format offers a defined commercial setting for businesses seeking space that can accommodate both administrative and customer-facing functions.
Key Highlights
- Mixed‑use office and showroom configuration
- 3168 square feet of property size
- 0.07‑acre site
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
$34,975
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
8.74%
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%
$699,500
$699.5K
Cap Rate 7%
$499,643
$499.6K
Cap Rate 9%
$388,611
$388.6K
Market Conditions
NOI Build-Up for 3,168 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
$60.8K $19.20/SF
− Vacancy
−$4.9K −$1.54/SF
EGI
$56.0K $17.66/SF
− OpEx
−$21.0K −$6.62/SF
NOI
$35.0K $11.04/SF
Area
Grand Rapids, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$699,500
Cap Rate 7%
$499,643
Cap Rate 9%
$388,611
Alternative Uses
Best Use
Retail
$656.0K
$574.0K – $765.4K
NOI $45,923 @ 7.0% cap · market cap 11.48%
Second Best
Mixed Use
$499.6K
$437.2K – $582.9K
NOI $34,975 @ 7.0% cap · market cap 8.74%
Theoretical Best
Specialty Retail
$735.2K
$643.3K – $857.7K
NOI $51,464 @ 7.0% cap · market cap 12.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
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
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 - Versatile commercial property combining office and showroom functions in Grand Rapids.
Where is this mixed-use property located?
The property is located at 1628 Madison Avenue SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Mixed‑use office and showroom configuration; 3168 square feet of property size; 0.07‑acre site
