17-Unit Lakefront Apartment
For Sale
$1,199,999
Pending
104 W Houghton Lake Dr, Prudenville, MI 48651
Apartment property with private frontage on Houghton Lake’s East Bay and hospitality-oriented zoning.
Property Size16,304 SF
Days on Market290
Property Features for 104 W Houghton Lake Dr
General Information
Standard status
Pending
Size
16,304 SF
Total Parking Spaces
30
Property subtype
Multifamily
Zoning
VMU
Amenities
30 Parking Spaces
Building Details
Year Built
2014
Listing Agency:
MOXIE Real Estate + Development
Listed By:
Kyle Kimble · License #6501408446
(616) 706-6086
Source:
Carwm.resimplifi
Added: Nov 22, 2025
Changed: Sep 8
Last Checked: Aug 30 at 12:24AM
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 MOXIE Real Estate + Development
Investment Insights
Based on property information with market context.
Built in 2014, this 17-unit apartment property is positioned on Houghton Lake’s East Bay in Prudenville. The improvements include central air, forced-air heating, and natural gas service, with vinyl siding and paved public parking noted among the property features.
The site includes private frontage on an all-sports lake and is zoned VMU. The building formerly housed Sully’s on the Lake, providing a documented hospitality-related use history alongside its current apartment classification. The property is located at 104 West Houghton Lake Drive, Prudenville, Michigan 48651.
The site includes private frontage on an all-sports lake and is zoned VMU. The building formerly housed Sully’s on the Lake, providing a documented hospitality-related use history alongside its current apartment classification. The property is located at 104 West Houghton Lake Drive, Prudenville, Michigan 48651.
Key Highlights
- 17‑unit apartment building completed in 2014
- Private frontage on Houghton Lake’s East Bay
- All‑sports lake setting
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
$87,125
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
7.26%
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%
$1,742,500
$1.7M
Cap Rate 7%
$1,244,643
$1.2M
Cap Rate 9%
$968,056
$968.1K
Market Conditions
NOI Build-Up for 16,304 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
$244.6K $15.00/SF
− Vacancy
−$61.1K −$3.75/SF
EGI
$183.4K $11.25/SF
− OpEx
−$96.3K −$5.91/SF
NOI
$87.1K $5.34/SF
Area
Roscommon County, MI
Vacancy
25.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
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%
$1,742,500
Cap Rate 7%
$1,244,643
Cap Rate 9%
$968,056
Alternative Uses
Best Use
Hotel Hospitality
$1.24M
$1.09M – $1.45M
NOI $87,125 @ 7.0% cap · market cap 7.26%
Second Best
Apartment 5plus
$989.2K
$865.5K – $1.15M
NOI $69,241 @ 7.0% cap · market cap 5.77%
Theoretical Best
Office A
$2.68M
$2.35M – $3.13M
NOI $187,822 @ 7.0% cap · market cap 15.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
92
Businesses Nearby
Explore this area
Business Placement
Demographics for 48651, MI
4,396
Population
3,825
Households
1.1
Avg Household Size
56
Median Age
19%
College-Educated
92%
High-School Grad
71.0 sq mi
ZIP Area
62
Density / Sq Mi
$42,938
Median Household Income
$32,917
Median Earnings
$797
Median Rent
$156,000
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Apartment property with private frontage on Houghton Lake’s East Bay and hospitality-oriented zoning.
Where is this apartment building located?
The property is located at 104 W Houghton Lake Dr Prudenville, MI.
What is the asking price?
The asking price for this property is $1,199,999.
What are key features of this property?
This property features: 17‑unit apartment building completed in 2014; Private frontage on Houghton Lake’s East Bay; All‑sports lake setting
