Barrier-Free Assisted Living
For Sale
$749,000
3255 Mahoney Drive, Traverse City, MI 49686
COMMERCIAL - Traverse City, MI
Property Size3,995 SF
Lot Size3.61 Acres
Price / SF$187.48
Days on Market205
Property Features for 3255 Mahoney Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Exterior features
Vinyl
Lot features
Freestanding
Directions
HAMMOND RD TO SUPPLY RD TO PROPERTY ON LEFT.
Subdivision
Grand Traverse
Standard status
Active
Size
3,995 SF
Lot size
3.61 Acres
Taxes and HOA fees
Tax Description
TBP - SEE ASSOCIATED DOCUMENTS
Legal Description
TBP - SEE ASSOCIATED DOCUMENTS
Utilities
Water source
Private
Amenities
community kitchen
dining area
living room
family room
barrier free bathrooms
walking path
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Five Star Real Estate - Front St TC
(231) 778-1200
Listed By:
Sam Abood · License #6504216686
(231) 218-5130
Added: Feb 4
Changed: Aug 6
Last Checked: Aug 28 at 2:06AM
MLS# 1942069
Copyright © 2026 Northern Great Lakes Realtors MLS. 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 3,995-square-foot assisted living property includes 6 bedrooms and 3.5 bathrooms, with a community kitchen, dining area, living room, and family room. Barrier-free bathrooms, doors, and entry areas support accessible use, while laminate flooring extends throughout the interior. The property also features walkout basements and a fire suppression system with sprinklers.
Set on 3.61 acres at 3255 Mahoney Drive in Traverse City, the property includes a walking path for guests and private water service. The frame building has vinyl exterior siding and an asphalt roof. Its existing layout and accessibility features support continued assisted living use, subject to applicable approvals.
Set on 3.61 acres at 3255 Mahoney Drive in Traverse City, the property includes a walking path for guests and private water service. The frame building has vinyl exterior siding and an asphalt roof. Its existing layout and accessibility features support continued assisted living use, subject to applicable approvals.
Key Highlights
- 3,995‑square‑foot property with 6 bedrooms and 3.5 bathrooms
- Barrier‑free bathrooms, doors, and entry areas
- Community kitchen, dining area, living room, and family room
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
$37,968
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
5.07%
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%
$759,360
$759.4K
Cap Rate 7%
$542,400
$542.4K
Cap Rate 9%
$421,867
$421.9K
Market Conditions
NOI Build-Up for 3,995 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
$71.9K $18.00/SF
− Vacancy
−$2.9K −$0.72/SF
EGI
$69.0K $17.28/SF
− OpEx
−$31.1K −$7.78/SF
NOI
$38.0K $9.50/SF
Area
Grand Traverse County, MI
Vacancy
4.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
45.00%
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%
$759,360
Cap Rate 7%
$542,400
Cap Rate 9%
$421,867
Alternative Uses
Best Use
Apartment 5plus
$542.4K
$474.6K – $632.8K
NOI $37,968 @ 7.0% cap · market cap 5.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$867.9K
$759.4K – $1.01M
NOI $60,750 @ 7.0% cap · market cap 8.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
Median Home Value
Questions? Ask Rey
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- Larosa Adult Foster Care Home — 3305 Wemple Rd, Traverse City, MI 49686
Frequently Asked Questions
What type of property is this?
Assisted living facility - Former assisted living property with community gathering areas, walkout basements, and fire protection systems.
Where is this assisted living facility located?
The property is located at 3255 Mahoney Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3,995‑square‑foot property with 6 bedrooms and 3.5 bathrooms; Barrier‑free bathrooms, doors, and entry areas; Community kitchen, dining area, living room, and family room
