Waterfront Mixed-Use
For Sale
$399,000
8848 State Avenue, Houghton Lake, MI 48629
Commercial Sale, Houghton Lake, MI
Property Size2,880 SF
Lot Size0.32 Acres
Price / SF$138.54
Days on Market111
Property Features for 8848 State Avenue
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
C-W
Parking features
Parking Lot
Basement
Crawl Space
Subdivision
Bebee Sub
Directions
From 127 take a right onto M-55 just pass the light on the left.
Standard status
Active
APN
006-120-010-1000
Size
2,880 SF
Lot size
0.32 Acres
Taxes and HOA fees
Tax Description
1111/1533 1111/1532 970/1799 L951/P2607 L833/P6 L383/P502 234 LOTS 10, 11 & 12 BEBEE SUBD SPLIT/COMBINED ON 11/22/2019 FROM 006-120-010-0000, 006-120-011-0000;
Tax Annual Amount
3706
Legal Description
1111/1533 1111/1532 970/1799 L951/P2607 L833/P6 L383/P502 234 LOTS 10, 11 & 12 BEBEE SUBD SPLIT/COMBINED ON 11/22/2019 FROM 006-120-010-0000, 006-120-011-0000;
Utilities
Water source
Well
Water front
1
Building Details
Floors in Building
1
Listing Agency:
KW Northern Michigan Team Partners
(989) 745-8992
Listed By:
Laura Corpe · License #6501426430
(989) 387-8067
Added: May 22
Changed: Aug 27
Last Checked: Sep 9 at 2:06AM
MLS# 201840270
Copyright © 2026 Water Wonderland Board of Realtors®. 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 2,880-square-foot mixed-use property at 8848 State Avenue combines commercial space with residential living quarters and storage in the rear portion of the building. The sale also includes a vacant canal-front lot, a parking lot, and a well. Zoned C-W, the property supports a range of stated uses, including retail shops, restaurants, motels, and single-family dwellings.
The site provides 138 feet of total canal frontage with direct access to Houghton Lake. Five boat slips are currently rented for the season, adding an operating component to the waterfront setting. Special exception uses identified in the property information include condominiums, microbreweries, and marinas, subject to applicable approval. The property is located in Houghton Lake, MI 48629, in Roscommon County.
The site provides 138 feet of total canal frontage with direct access to Houghton Lake. Five boat slips are currently rented for the season, adding an operating component to the waterfront setting. Special exception uses identified in the property information include condominiums, microbreweries, and marinas, subject to applicable approval. The property is located in Houghton Lake, MI 48629, in Roscommon County.
Key Highlights
- 2,880‑square‑foot mixed‑use building with rear residential living quarters and storage
- 138 feet of total canal frontage with direct access to Houghton Lake
- Five boat slips currently rented for the season
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
$25,920
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
6.50%
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%
$518,400
$518.4K
Cap Rate 7%
$370,286
$370.3K
Cap Rate 9%
$288,000
$288.0K
Market Conditions
NOI Build-Up for 2,880 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
$43.2K $15.00/SF
− Vacancy
−$8.6K −$3.00/SF
EGI
$34.6K $12.00/SF
− OpEx
−$8.6K −$3.00/SF
NOI
$25.9K $9.00/SF
Area
Roscommon County, MI
Vacancy
20.00%
Lease Rate
$15.00 /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%
$518,400
Cap Rate 7%
$370,286
Cap Rate 9%
$288,000
Alternative Uses
Best Use
Office B
$370.3K
$324.0K – $432.0K
NOI $25,920 @ 7.0% cap · market cap 6.50%
Second Best
Retail
$297.9K
$260.7K – $347.6K
NOI $20,854 @ 7.0% cap · market cap 5.23%
Theoretical Best
Office A
$474.0K
$414.7K – $553.0K
NOI $33,178 @ 7.0% cap · market cap 8.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
169
Businesses Nearby
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - C-W-zoned property combines commercial space, residential quarters, storage, and canal access.
Where is this mixed-use property located?
The property is located at 8848 State Avenue Houghton Lake, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: 2,880‑square‑foot mixed‑use building with rear residential living quarters and storage; 138 feet of total canal frontage with direct access to Houghton Lake; Five boat slips currently rented for the season
