Commercial Parcel with Two
For Sale
$250,000
8777 Red Arrow Highway, Watervliet, MI 49098
COMMERCIAL - Watervliet, MI
Property Size1,200 SF
Lot Size1.31 Acres
Price / SF$208.33
Days on Market34
Property Features for 8777 Red Arrow Highway
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Commercial
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Interior features
Broadband
Elementary school district
Watervliet
Middle school district
Watervliet
High school district
Watervliet
Directions
Red Arrow Hwy east of downtown Watervliet across from High School and Corewell Watervliet Hospital
Standard status
Active
APN
11-21-0023-0012-03-0
Size
1,200 SF
Lot size
1.31 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
lengthy. On file. Approx 1.3 acres
Legal Description
lengthy. On file. Approx 1.3 acres
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Heating system
Forced Air
Cooling system
Central Air
Water source
Well
Building Details
Year built
2001
Floors in Building
1
Number of units
2
Building materials
Metal Siding
Listing Agency:
American Homes Real Estate
(269) 468-4663
Listed By:
Mikki Swisher · License #6502372652
(269) 208-0133
Added: Jul 14
Changed: Aug 4
Last Checked: Aug 16 at 2:06PM
MLS# 26035909
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 property consists of a 1.31-acre parcel improved with two buildings and a large paved parking lot. The main building was built in 2001 and is approximately 1,200 square feet with 10-foot ceiling height. It includes two bathrooms, gas heat and central air, along with office and kitchen area, currently used as a hall. A secondary structure built in 2019 is a 24’ x 28’ pole barn with a concrete floor, an overhead door, and 12-foot ceiling height.
The property is located in Watervliet, MI at 8777 Red Arrow Highway. Public remarks indicate it is less than a mile from Interstate 94 access and positioned on a well-traveled Class A road with high visibility.
The combination of office/hall space, additional covered storage/utility space in the pole barn, and expansive paved parking supports a range of commercial uses where indoor gathering and flexible space are important.
The property is located in Watervliet, MI at 8777 Red Arrow Highway. Public remarks indicate it is less than a mile from Interstate 94 access and positioned on a well-traveled Class A road with high visibility.
The combination of office/hall space, additional covered storage/utility space in the pole barn, and expansive paved parking supports a range of commercial uses where indoor gathering and flexible space are important.
Key Highlights
- 1.3‑acre commercial parcel with high‑visibility on well‑traveled Red Arrow Highway
- Main building built in 2001: approx. 1,200 SF with 10' ceiling height, office space, and kitchen area
- Main building has 2 bathrooms, gas heat, and central air
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
$13,220
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
5.29%
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%
$264,400
$264.4K
Cap Rate 7%
$188,857
$188.9K
Cap Rate 9%
$146,889
$146.9K
Market Conditions
NOI Build-Up for 1,200 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
$20.4K $17.04/SF
− Vacancy
−$2.8K −$2.35/SF
EGI
$17.6K $14.69/SF
− OpEx
−$4.4K −$3.67/SF
NOI
$13.2K $11.02/SF
Area
Berrien County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$264,400
Cap Rate 7%
$188,857
Cap Rate 9%
$146,889
Alternative Uses
Best Use
Office B
$188.9K
$165.3K – $220.3K
NOI $13,220 @ 7.0% cap · market cap 5.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$252.5K
$221.0K – $294.6K
NOI $17,676 @ 7.0% cap · market cap 7.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Explore this area
Business Placement
Demographics for 49098, MI
5,739
Population
3,032
Households
1.9
Avg Household Size
44
Median Age
21%
College-Educated
88%
High-School Grad
32.6 sq mi
ZIP Area
176
Density / Sq Mi
$56,899
Median Household Income
$30,278
Median Earnings
$1,253
Median Rent
$150,500
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?
Office units - Zoned commercial 1.31-acre site with a 1,200 SF office/hall building plus a 2019 pole barn and large paved parking.
Where is this office units located?
The property is located at 8777 Red Arrow Highway Watervliet, MI.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1.3‑acre commercial parcel with high‑visibility on well‑traveled Red Arrow Highway; Main building built in 2001: approx. 1,200 SF with 10' ceiling height, office space, and kitchen area; Main building has 2 bathrooms, gas heat, and central air
