Mixed-Use Downtown
For Sale
$499,000
1-144 River St, Elk Rapids, MI 49629
Ground-floor commercial space with a garden studio apartment and lower-level storage, supported by B2 zoning.
Property Size2,953 SF
Price / SF$168.98
Days on Market84
Property Features for 1-144 River St
General Information
Standard status
Active
Size
2,953 SF
Zoning
B2
Additional Details
Multifamily Units
1
Listing Agency:
REO-TCRandolph-233022
(231) 714-4787
Listed By:
Blake Bernard · License #T6501380347
(231) 714-4787
Source:
Exprealty
Added: May 20
Changed: Aug 10
Last Checked: Aug 10 at 8:29AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of REO-TCRandolph-233022
Investment Insights
Based on property information with market context.
This mixed-use building offers a versatile arrangement designed for combined or separate uses. Unit #1 includes a commercial space currently occupied with potential to re-sign a lease in the fall, alongside a garden studio apartment that is currently rented on a month-to-month basis. A valuable lower-level storage area also supports flexible day-to-day operations and adds practical utility for an owner-occupant or investor.
Located in the heart of downtown Elk Rapids, the property benefits from a walkable setting near local shops and restaurants, with access to the marina and beach nearby. The building is described as historic and character-filled, featuring architectural details that help define its downtown presence.
Zoned B2, the property supports a range of commercial and residential uses, including short-term rentals as referenced in the remarks. This combination makes it a strong fit for entrepreneurs looking to operate from the commercial space while maintaining an income-producing residence component, or for investors seeking a mixed-use structure with both tenancy and storage in place. The opportunity also allows buyers to evaluate options around the existing commercial occupancy and the month-to-month apartment rental.
Located in the heart of downtown Elk Rapids, the property benefits from a walkable setting near local shops and restaurants, with access to the marina and beach nearby. The building is described as historic and character-filled, featuring architectural details that help define its downtown presence.
Zoned B2, the property supports a range of commercial and residential uses, including short-term rentals as referenced in the remarks. This combination makes it a strong fit for entrepreneurs looking to operate from the commercial space while maintaining an income-producing residence component, or for investors seeking a mixed-use structure with both tenancy and storage in place. The opportunity also allows buyers to evaluate options around the existing commercial occupancy and the month-to-month apartment rental.
Key Highlights
- Mixed‑use building in downtown Elk Rapids with ground‑floor commercial space plus a garden studio apartment and lower‑level storage
- Garden studio apartment is currently rented month to month at $695
- Unit #1 includes a commercial space currently occupied with potential to re‑sign the lease in the fall
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
$30,655
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
6.14%
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%
$613,100
$613.1K
Cap Rate 7%
$437,929
$437.9K
Cap Rate 9%
$340,611
$340.6K
Market Conditions
NOI Build-Up for 2,953 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
$45.7K $15.48/SF
− Vacancy
−$1.9K −$0.65/SF
EGI
$43.8K $14.83/SF
− OpEx
−$13.1K −$4.45/SF
NOI
$30.7K $10.38/SF
Area
Antrim County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$613,100
Cap Rate 7%
$437,929
Cap Rate 9%
$340,611
Alternative Uses
Best Use
Retail
$437.9K
$383.2K – $510.9K
NOI $30,655 @ 7.0% cap · market cap 6.14%
Second Best
Mixed Use
$355.9K
$311.5K – $415.3K
NOI $24,916 @ 7.0% cap · market cap 4.99%
Theoretical Best
Office A
$525.5K
$459.8K – $613.1K
NOI $36,786 @ 7.0% cap · market cap 7.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
361
Businesses Nearby
15k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Mobil
Shops & Services
9,553 visits/mo
0.3 miles
Shell
Shops & Services
2,168 visits/mo
0.4 miles
Fifth Third Bank & ATM
Shops & Services
1,722 visits/mo
0.4 miles
Huntington Bank
Shops & Services
1,626 visits/mo
0.1 miles
Demographics for 49629, MI
1,997
Population
1,696
Households
1.2
Avg Household Size
60
Median Age
46%
College-Educated
99%
High-School Grad
3.8 sq mi
ZIP Area
526
Density / Sq Mi
$74,318
Median Household Income
$46,250
Median Earnings
$1,032
Median Rent
$347,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Ground-floor commercial space with a garden studio apartment and lower-level storage, supported by B2 zoning.
Where is this mixed-use property located?
The property is located at 1-144 River St Elk Rapids, MI.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Mixed‑use building in downtown Elk Rapids with ground‑floor commercial space plus a garden studio apartment and lower‑level storage; Garden studio apartment is currently rented month to month at $695; Unit #1 includes a commercial space currently occupied with potential to re‑sign the lease in the fall
