State-Approved Cannabis Cultivation
For Sale
Contact for pricing
1003 N Elm Street, Tekonsha, MI 49092
Operational cannabis facility with indoor grow rooms, processing infrastructure, and expansion-ready utilities.
Property Size7,260 SF
Price / SF$68.73
Days on Market321
Property Features for 1003 N Elm Street
General Information
Standard status
Active
Size
7,260 SF
Property subtype
Business for Sale, Industrial
Building Details
Year Built
2010
Buildings
1
Units
1
Listing Agency:
Michigan Top Producers
(269) 806-2163
Listed By:
Brian Decker · License #6501380432
Source:
Crexi
Added: Oct 15, 2025
Changed: Aug 30
Last Checked: Aug 31 at 1:35PM
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 Michigan Top Producers
Investment Insights
Based on property information with market context.
This 7,260 SF cannabis cultivation and processing facility was built in 2010 and has operated for four years. The property includes three completed indoor grow rooms, professional lighting, HVAC, reverse osmosis equipment, Airshield pathogen protection, security monitoring, and compliance systems. A 480V 3-phase electrical service provides excess capacity for additional build-out, while the engineered septic system is designed to support future expansion.
Municipal ordinance permits outdoor cultivation, with the possibility of adding greenhouses, pods, or conventional outdoor growing areas. The facility also has municipal water service and is located at 1003 N Elm Street in Tekonsha, Michigan. The existing infrastructure supports immediate use as a state-approved cultivation and processing operation.
Municipal ordinance permits outdoor cultivation, with the possibility of adding greenhouses, pods, or conventional outdoor growing areas. The facility also has municipal water service and is located at 1003 N Elm Street in Tekonsha, Michigan. The existing infrastructure supports immediate use as a state-approved cultivation and processing operation.
Key Highlights
- State‑approved cannabis cultivation and processing facility
- 7,260 SF building constructed in 2010
- Three completed indoor grow rooms with expansion capacity
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
$44,901
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
9.00%
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%
$898,020
$898.0K
Cap Rate 7%
$641,443
$641.4K
Cap Rate 9%
$498,900
$498.9K
Market Conditions
NOI Build-Up for 7,260 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
$68.8K $9.48/SF
− Vacancy
−$4.7K −$0.64/SF
EGI
$64.1K $8.84/SF
− OpEx
−$19.2K −$2.65/SF
NOI
$44.9K $6.18/SF
Area
Calhoun County, MI
Vacancy
6.80%
Lease Rate
$9.48 /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%
$898,020
Cap Rate 7%
$641,443
Cap Rate 9%
$498,900
Alternative Uses
Best Use
Industrial
$641.4K
$561.3K – $748.4K
NOI $44,901 @ 7.0% cap · market cap 9.00%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$86.12M
$75.36M – $100.47M
NOI $6,028,450 @ 7.0% cap · market cap 1,208.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
125
Businesses Nearby
Explore this area
Business Placement
Demographics for 49092, MI
2,024
Population
826
Households
2.5
Avg Household Size
46
Median Age
17%
College-Educated
92%
High-School Grad
57.3 sq mi
ZIP Area
35
Density / Sq Mi
$65,938
Median Household Income
$38,419
Median Earnings
$1,100
Median Rent
$138,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Operational cannabis facility with indoor grow rooms, processing infrastructure, and expansion-ready utilities.
Where is this cannabis property located?
The property is located at 1003 N Elm Street Tekonsha, 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: State‑approved cannabis cultivation and processing facility; 7,260 SF building constructed in 2010; Three completed indoor grow rooms with expansion capacity
