Retail Plaza with Grocery
For Sale
$7,000,000
325 Railroad Street, Hudson, MI 49247
COMMERCIAL - Hudson, MI
Property Size56,000 SF
Lot Size5.05 Acres
Price / SF$125
Days on Market300
Property Features for 325 Railroad Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Bathrooms
6
Full bathrooms
6
Rooms
Bathroom 3, Bathroom 4, Bathroom 1, Bathroom 5, Bathroom 6, Bathroom 2
Elementary school district
Hudson
Middle school district
Hudson
High school district
Hudson
Subdivision
Lenawee County - Y
Standard status
Active
APN
XH0-118-3670-00, plus 8 more
Size
56,000 SF
Lot size
5.05 Acres
Taxes and HOA fees
Tax Year
25
Tax Description
Please see agent remarks, this includes 9 tax ids.
Tax Annual Amount
53507
Legal Description
Please see agent remarks, this includes 9 tax ids.
Utilities
Utilities
Electricity Available
Heating system
Forced Air
Amenities
loading dock
Building Details
Year built
1970
Floors in Building
1
Number of units
8
Roof type
Rubber
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 782-2996
Listed By:
Brittany Ostrowski · License #6501397335
(517) 414-4461
Added: Oct 13, 2025
Changed: Aug 4
Last Checked: Aug 8 at 11:06PM
MLS# 25052623
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.
Bob's Market House is an approximately 56,000-square-foot retail plaza anchored by a well-established grocery store. The grocery location includes Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy, creating a multi-service tenant mix within the anchor building. The property also includes an additional unit currently available for lease at approximately 2,700 square feet.
The plaza features a convenient loading dock and ample on-site parking with more than 200 spaces. Public remarks describe the property as having excellent road frontage at a highly visible intersection, supporting strong customer access.
The building underwent a major remodel in 2006 and received a new roof in 2016, and is described as thoughtfully updated and meticulously maintained. Surrounding tenant mentions include County National Bank and Athletico Physical Therapy.
The plaza features a convenient loading dock and ample on-site parking with more than 200 spaces. Public remarks describe the property as having excellent road frontage at a highly visible intersection, supporting strong customer access.
The building underwent a major remodel in 2006 and received a new roof in 2016, and is described as thoughtfully updated and meticulously maintained. Surrounding tenant mentions include County National Bank and Athletico Physical Therapy.
Key Highlights
- 59,000 SF retail plaza anchored by a well‑established grocery store with multiple in‑building businesses
- Grocery store includes Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy
- Tenant mix includes County National Bank and Athletico Physical Therapy, plus a 2,700 SF unit currently available for lease
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
$622,853
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
8.90%
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%
$12,457,060
$12.5M
Cap Rate 7%
$8,897,900
$8.9M
Cap Rate 9%
$6,920,589
$6.9M
Market Conditions
NOI Build-Up for 56,000 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
$866.9K $15.48/SF
− Vacancy
−$36.4K −$0.65/SF
EGI
$830.5K $14.83/SF
− OpEx
−$207.6K −$3.71/SF
NOI
$622.9K $11.12/SF
Area
Lenawee County, MI
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
25.00%
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%
$12,457,060
Cap Rate 7%
$8,897,900
Cap Rate 9%
$6,920,589
Alternative Uses
Best Use
Healthcare Medical
$9.54M
$8.34M – $11.13M
NOI $667,598 @ 7.0% cap · market cap 9.54%
Second Best
Specialty Retail
$8.90M
$7.79M – $10.38M
NOI $622,853 @ 7.0% cap · market cap 8.90%
Theoretical Best
Multifamily LT 5
$694.78M
$607.94M – $810.58M
NOI $48,634,919 @ 7.0% cap · market cap 694.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
240
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49247, MI
5,720
Population
2,457
Households
2.3
Avg Household Size
42
Median Age
17%
College-Educated
89%
High-School Grad
84.0 sq mi
ZIP Area
68
Density / Sq Mi
$60,404
Median Household Income
$41,373
Median Earnings
$906
Median Rent
$138,600
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?
Shopping center - Immaculately maintained retail plaza anchored by a grocery market with multiple in-store tenants and ample on-site parking.
Where is this shopping center located?
The property is located at 325 Railroad Street Hudson, MI.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: 59,000 SF retail plaza anchored by a well‑established grocery store with multiple in‑building businesses; Grocery store includes Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy; Tenant mix includes County National Bank and Athletico Physical Therapy, plus a 2,700 SF unit currently available for lease
