Commercial Land with Existing
For Sale
$230,000
40 Martin Luther King Jr Street SE, Grand Rapids, MI 49507
COMMERCIAL - Grand Rapids, MI
Property Size595 SF
Lot Size0.25 Acres
Price / SF$386.55
Days on Market747
Property Features for 40 Martin Luther King Jr Street 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
Accessible from HWY 131 exit 83B, go East on Martin Luther King Jr SE
Subdivision
Grand Rapids - G
Standard status
Active
APN
41-14-31-301-014
Size
595 SF
Lot size
0.25 Acres
Taxes and HOA fees
Tax Year
2023
Tax Description
LOT 493* DORAN S ASSESSOR S PLAT NO 15* OF LOTS 2, 3, 4, 5 & 6 OF A CAMPAU S SUBDIVISION OF THE W 1/2 OF THE SW 1/4 SEC
Legal Description
LOT 493* DORAN S ASSESSOR S PLAT NO 15* OF LOTS 2, 3, 4, 5 & 6 OF A CAMPAU S SUBDIVISION OF THE W 1/2 OF THE SW 1/4 SEC
Utilities
Heating system
Forced Air
Building Details
Year built
1967
Number of units
1
Building materials
Wood Siding
Listing Agency:
1st Advantage Realty
(616) 534-4480
Listed By:
Rene Guzman · License #6501383944
(616) 260-8670
Added: Aug 8, 2024
Changed: Aug 4
Last Checked: Aug 24 at 4:06AM
MLS# 24041297
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 commercial land offering includes a 0.25-acre parcel with an existing 595-square-foot building. The structure was built in 1967 and features wood siding, forced-air heating, and one bathroom. Two additional parcels are included in the offering.
Key Highlights
- 0.25‑acre commercial land parcel
- Existing 595‑square‑foot building
- Building constructed in 1967
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
$8,625
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
3.75%
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%
$172,500
$172.5K
Cap Rate 7%
$123,214
$123.2K
Cap Rate 9%
$95,833
$95.8K
Market Conditions
NOI Build-Up for 595 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
$13.1K $21.96/SF
− Vacancy
−$745 −$1.25/SF
EGI
$12.3K $20.71/SF
− OpEx
−$3.7K −$6.21/SF
NOI
$8.6K $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%
$172,500
Cap Rate 7%
$123,214
Cap Rate 9%
$95,833
Alternative Uses
Best Use
Retail
$123.2K
$107.8K – $143.8K
NOI $8,625 @ 7.0% cap · market cap 3.75%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$138.1K
$120.8K – $161.1K
NOI $9,666 @ 7.0% cap · market cap 4.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,188
Businesses Nearby
34k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Shops & Services 47%
Home Improvements & Furnishings 4%
Electronics 2%
Burger King
Dining
9,500 visits/mo
0.0 miles
Dollar Tree
Shops & Services
9,144 visits/mo
0.2 miles
Family Dollar
Shops & Services
6,683 visits/mo
0.3 miles
SUBWAY
Dining
3,211 visits/mo
0.5 miles
BIGGBY COFFEE
Dining
2,099 visits/mo
0.5 miles
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
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Commercial parcel with an existing building, forced-air heat, and a single bathroom.
Where is this commercial land located?
The property is located at 40 Martin Luther King Jr Street SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $230,000.
What are key features of this property?
This property features: 0.25‑acre commercial land parcel; Existing 595‑square‑foot building; Building constructed in 1967
