Historic Downtown Mixed-Use
For Sale
$169,900
Pending
106 Locust Street, Allegan, MI 49010
COMMERCIAL - Allegan, MI
Property Size3,300 SF
Lot Size0.06 Acres
Days on Market167
Property Features for 106 Locust Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
C1 CBD
Bathrooms
1
Full bathrooms
1
Rooms
Basement, Bathroom 1
Interior features
Broadband
Elementary school district
Allegan
Middle school district
Allegan
High school district
Allegan
Directions
M89 to Hubbard Street left onto Locust.
Standard status
Pending
APN
51-205-019-00
Size
3,300 SF
Lot size
0.06 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
N 22.27 FT OF S 97.93 FT OF LOTS 267 & 268 ALSO N 10 FT OF S 75.66 FT OF W 30 FT OF LOT 267 O. P. SEC 28.
Tax Annual Amount
3334
Legal Description
N 22.27 FT OF S 97.93 FT OF LOTS 267 & 268 ALSO N 10 FT OF S 75.66 FT OF W 30 FT OF LOT 267 O. P. SEC 28.
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1880
Floors in Building
1
Number of units
2
Building materials
Brick
Roof type
Rubber
Listing Agency:
Coldwell Banker Sneller Real Estate
(269) 355-1919
Listed By:
Carol L Sneller · License #6502338165
(269) 720-0580
Added: Mar 2
Changed: Aug 4
Last Checked: Aug 16 at 7:06AM
MLS# 26007561
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.
Located at 106 Locust Street, this brick mixed-use building contains 3,300 square feet on a 0.06-acre parcel. Built in 1880, the property includes a basement and bathroom, with forced-air heating, central air, a rubber roof, broadband, and cable availability. The layout supports commercial activity at street level with potential for residential redevelopment on the upper floor.
The building sits in Allegan’s historic, walkable downtown near local shops, dining, and the Kalamazoo Riverfront. Its downtown setting and commercial corridor position provide a basis for a business location or a mixed-use repositioning project. The neighboring property is also available under MLS 26007575, allowing consideration of a larger combined redevelopment plan.
The building sits in Allegan’s historic, walkable downtown near local shops, dining, and the Kalamazoo Riverfront. Its downtown setting and commercial corridor position provide a basis for a business location or a mixed-use repositioning project. The neighboring property is also available under MLS 26007575, allowing consideration of a larger combined redevelopment plan.
Key Highlights
- 3,300‑square‑foot mixed‑use building on a 0.06‑acre parcel
- Brick construction dating to 1880
- Upper‑level residential redevelopment potential above commercial space
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
$12,757
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
7.51%
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%
$255,140
$255.1K
Cap Rate 7%
$182,243
$182.2K
Cap Rate 9%
$141,744
$141.7K
Market Conditions
NOI Build-Up for 3,300 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
$22.7K $6.88/SF
− Vacancy
−$2.3K −$0.69/SF
EGI
$20.4K $6.19/SF
− OpEx
−$7.7K −$2.32/SF
NOI
$12.8K $3.87/SF
Area
Allegan County, MI
Vacancy
10.10%
Lease Rate
$6.88 /SF/Yr
Expense Ratio
37.50%
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%
$255,140
Cap Rate 7%
$182,243
Cap Rate 9%
$141,744
Alternative Uses
Best Use
Retail
$489.4K
$428.2K – $571.0K
NOI $34,257 @ 7.0% cap · market cap 20.16%
Second Best
Mixed Use
$182.2K
$159.5K – $212.6K
NOI $12,757 @ 7.0% cap · market cap 7.51%
Theoretical Best
Hotel Hospitality
$30.99M
$27.12M – $36.16M
NOI $2,169,329 @ 7.0% cap · market cap 1,276.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
587
Businesses Nearby
14k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 81%
Dining 17%
Home Improvements & Furnishings 2%
Shell
Shops & Services
5,401 visits/mo
0.2 miles
Sunoco
Shops & Services
3,211 visits/mo
0.2 miles
Huntington Bank
Shops & Services
2,722 visits/mo
0.1 miles
Pizza Hut
Dining
2,431 visits/mo
0.1 miles
Andy's Ace Hardware
Home Improvements & Furnishings
219 visits/mo
0.3 miles
Demographics for 49010, MI
18,183
Population
7,222
Households
2.5
Avg Household Size
41
Median Age
18%
College-Educated
93%
High-School Grad
156.6 sq mi
ZIP Area
116
Density / Sq Mi
$72,361
Median Household Income
$42,133
Median Earnings
$1,061
Median Rent
$204,200
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 - Brick commercial building with upper-level redevelopment potential in Allegan’s downtown district.
Where is this mixed-use property located?
The property is located at 106 Locust Street Allegan, MI.
What is the asking price?
The asking price for this property is $169,900.
What are key features of this property?
This property features: 3,300‑square‑foot mixed‑use building on a 0.06‑acre parcel; Brick construction dating to 1880; Upper‑level residential redevelopment potential above commercial space
