Mixed-Use Property with Two
For Sale
Under Contract
$1,600,000
404 W Liberty Street, Ann Arbor, MI 48103
Commercial Sale, Ann Arbor, MI
Property Size2,650 SF
Lot Size0.18 Acres
Price / SF$300.86
Days on Market420
Property Features for 404 W Liberty Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
D2
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 3, Basement, Bathroom 1, Bathroom 2
Parking
10
Interior features
Broadband
Elementary school district
Ann Arbor
Middle school district
Ann Arbor
High school district
Ann Arbor
Subdivision
Ann Arbor/Washtenaw - A
Standard status
Active Under Contract
APN
09-09-29-211-026
Size
5,318 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
PRT OF LOTS 11, 12 & 13, BLOCK 2, ASSESSOR'S PLAT NO 3 COM SE COR LOT 11, TH NLY 110 FT FOR POB, TH CONT NLY 73.80....
Tax Annual Amount
16461
Legal Description
PRT OF LOTS 11, 12 & 13, BLOCK 2, ASSESSOR'S PLAT NO 3 COM SE COR LOT 11, TH NLY 110 FT FOR POB, TH CONT NLY 73.80....
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Amenities
full kitchen
lounge
2 bathrooms
full basement storage
Building Details
Year built
1936
Number of units
2
Building materials
Block, Concrete, Stucco
Roof type
Rubber, Composition
Listing Agency:
J Keller Properties, LLC
(734) 369-8239
Listed By:
Jonathon Keller · License #6502370935
(734) 323-1072
Added: Jul 28, 2025
Changed: Sep 16
Last Checked: Sep 20 at 11:06AM
MLS# 25037503
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 property contains two buildings totaling 5,318 square feet on 0.18 acres. The office building at 404 W Liberty Street provides 2,650 square feet with eight private offices, a kitchen, lounge, two bathrooms, and a full basement offering storage space. The second building at 406 W Liberty Street includes a 1,334-square-foot first-floor garage and a 1,334-square-foot upstairs apartment with two bedrooms, one bathroom, large living areas, skylights, and a balcony.
The parcel is zoned D2 and identified as a non-contributing building within the historic west side. A shared driveway serves the property. Improvements date to 1936 and include block, concrete, and stucco construction, forced-air heat, central air, broadband, and a combination of composition and rubber roofing.
The parcel is zoned D2 and identified as a non-contributing building within the historic west side. A shared driveway serves the property. Improvements date to 1936 and include block, concrete, and stucco construction, forced-air heat, central air, broadband, and a combination of composition and rubber roofing.
Key Highlights
- 5,318 SF mixed‑use property on a 0.18‑acre parcel
- Two buildings at 404 W Liberty Street and 406 W Liberty Street
- 2,650 SF office building with 8 private offices, kitchen, lounge, bathrooms, and basement
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
$62,380
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
3.90%
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%
$1,247,600
$1.2M
Cap Rate 7%
$891,143
$891.1K
Cap Rate 9%
$693,111
$693.1K
Market Conditions
NOI Build-Up for 5,318 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
$108.5K $20.40/SF
− Vacancy
−$8.7K −$1.63/SF
EGI
$99.8K $18.77/SF
− OpEx
−$37.4K −$7.04/SF
NOI
$62.4K $11.73/SF
Area
Ann Arbor, MI
Vacancy
8.00%
Lease Rate
$20.40 /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%
$1,247,600
Cap Rate 7%
$891,143
Cap Rate 9%
$693,111
Alternative Uses
Best Use
Mixed Use
$891.1K
$779.8K – $1.04M
NOI $62,380 @ 7.0% cap · market cap 3.90%
Second Best
Office B
$853.5K
$746.8K – $995.8K
NOI $59,746 @ 7.0% cap · market cap 3.73%
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,215 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
3,175
Businesses Nearby
Explore this area
Business Placement
Demographics for 48103, MI
55,605
Population
25,511
Households
2.2
Avg Household Size
40
Median Age
75%
College-Educated
97%
High-School Grad
66.5 sq mi
ZIP Area
836
Density / Sq Mi
$115,513
Median Household Income
$65,698
Median Earnings
$1,760
Median Rent
$455,100
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-building commercial property combines private offices, a garage workspace, an apartment, and basement storage.
Where is this mixed-use property located?
The property is located at 404 W Liberty Street Ann Arbor, MI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 5,318 SF mixed‑use property on a 0.18‑acre parcel; Two buildings at 404 W Liberty Street and 406 W Liberty Street; 2,650 SF office building with 8 private offices, kitchen, lounge, bathrooms, and basement
