Two-Building Auto Shop
For Sale
$890,000
820 S Division Avenue, Grand Rapids, MI 49507
Commercial Sale, Grand Rapids, MI
Property Size4,908 SF
Lot Size0.54 Acres
Price / SF$181.34
Days on Market718
Property Features for 820 S Division Avenue
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
COMM
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Elementary school district
Grand Rapids
Middle school district
Grand Rapids
High school district
Grand Rapids
Directions
S Division Ave South of Martin Luther King Jr
Subdivision
Grand Rapids - G
Standard status
Active
APN
41-14-31-301-062
Size
4,908 SF
Lot size
0.54 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
LOTS 448, 449, 451 & 452 * DORAN'S ASSESSOR'S PLAT NO.15 * OF LOTS 2, 3, 4, 5 & 6 OF A
Tax Annual Amount
5217
Legal Description
LOTS 448, 449, 451 & 452 * DORAN'S ASSESSOR'S PLAT NO.15 * OF LOTS 2, 3, 4, 5 & 6 OF A
Utilities
Heating system
Forced Air
Cooling system
Window Unit(s)
Building Details
Year built
2001
Number of units
2
Building materials
Aluminum Siding, Vinyl Siding, Metal Siding
Listing Agency:
RE/MAX United (Beltline) · RE/MAX International
(616) 884-2230
Listed By:
Delky Baez · License #6501321849
(616) 889-0491
Added: Sep 16, 2024
Changed: Aug 21
Last Checked: Sep 3 at 9:06AM
MLS# 24048911
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.
The property includes two buildings totaling 4,908 square feet on a 0.54-acre parcel. The 3,900-square-foot primary building is used for tire and automotive service work, while a detached 1,008-square-foot building provides additional commercial space. The improvements date to 2001 and feature aluminum, vinyl, and metal siding, forced-air heat, window-unit cooling, and a bathroom.
Located at 820 S Division Avenue in Grand Rapids, the property offers an automotive-oriented configuration with a second freestanding structure. The seller will remove equipment, tools, inventory, and personal belongings before possession. The property is available for showing during business hours.
Located at 820 S Division Avenue in Grand Rapids, the property offers an automotive-oriented configuration with a second freestanding structure. The seller will remove equipment, tools, inventory, and personal belongings before possession. The property is available for showing during business hours.
Key Highlights
- Two buildings totaling 4,908 square feet
- 3,900‑square‑foot primary automotive service building
- Separate 1,008‑square‑foot building on the property
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
$71,145
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
7.99%
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%
$1,422,900
$1.4M
Cap Rate 7%
$1,016,357
$1.0M
Cap Rate 9%
$790,500
$790.5K
Market Conditions
NOI Build-Up for 4,908 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
$107.8K $21.96/SF
− Vacancy
−$6.1K −$1.25/SF
EGI
$101.6K $20.71/SF
− OpEx
−$30.5K −$6.21/SF
NOI
$71.1K $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%
$1,422,900
Cap Rate 7%
$1,016,357
Cap Rate 9%
$790,500
Alternative Uses
Best Use
Retail
$1.02M
$889.3K – $1.19M
NOI $71,145 @ 7.0% cap · market cap 7.99%
Second Best
Industrial
$731.2K
$639.8K – $853.1K
NOI $51,184 @ 7.0% cap · market cap 5.75%
Theoretical Best
Specialty Retail
$1.14M
$996.6K – $1.33M
NOI $79,730 @ 7.0% cap · market cap 8.96%
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
Well-served
Demand for This Use
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.
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Frequently Asked Questions
What type of property is this?
Auto shop - Includes a separate building that expands the property’s commercial utility beyond the primary automotive service space.
Where is this auto shop located?
The property is located at 820 S Division Avenue Grand Rapids, MI.
What is the asking price?
The asking price for this property is $890,000.
What are key features of this property?
This property features: Two buildings totaling 4,908 square feet; 3,900‑square‑foot primary automotive service building; Separate 1,008‑square‑foot building on the property
