Building Details

Year built 1955

Roof type Asphalt, Shingle

Listing Agency: KW Platinum · Keller Williams Realty k***@kw.com Show Phone

Listed By: Kevin Malinowski · License #6501371117 Show Phone

Added: Aug 4, 2020 Changed: Sep 4 Last Checked: Sep 5 at 6:06AM

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MLS# 50019496

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Investment Insights

Based on property information with market context.

Located at 10973 Gratiot Street in Casco, Michigan, this mixed-use property contains 2,600 square feet on a 0.22-acre parcel. The configuration supports commercial activity on the lower level with living space above, creating a combined work-and-residential arrangement within one building.

Built in 1955, the property is equipped with forced-air heating, central air conditioning, public water, and an asphalt shingle roof. A dedicated parking lot serves the building. The improvements require updates and minor repairs, offering a buyer the opportunity to address the property’s condition as part of a future repositioning or owner-user plan.

Key Highlights

• 2,600‑square‑foot mixed‑use building on a 0.22‑acre parcel
• Commercial area below with living space upstairs
• Dedicated on‑site parking lot

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

$17,940

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

6.08%

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%

$358,800 $358.8K

Cap Rate 7%

$256,286 $256.3K

Cap Rate 9%

$199,333 $199.3K

Market Conditions

NOI Build-Up for 2,600 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

$31.2K $12.00/SF

− Vacancy

−$2.5K −$0.96/SF

EGI

$28.7K $11.04/SF

− OpEx

−$10.8K −$4.14/SF

NOI

$17.9K $6.90/SF

Area

St. Clair County, MI

Vacancy

8.00%

Lease Rate

$12.00 /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%

$358,800

Cap Rate 7%

$256,286

Cap Rate 9%

$199,333

Alternative Uses

Best Use

Retail

$480.1K

$420.1K – $560.2K (±1% cap)

NOI $33,610 @ 7.0% cap · market cap 11.39%

Second Best

Mixed Use

$256.3K

$224.3K – $299.0K (±1% cap)

NOI $17,940 @ 7.0% cap · market cap 6.08%

Theoretical Best

Multifamily LT 5

$1.95M

$1.71M – $2.28M (±1% cap)

NOI $136,821 @ 7.0% cap · market cap 46.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Live-work space

Location Intelligence

Trade Area within ½ mile

281

Businesses Nearby

Explore this area Business Placement

Demographics for 48064, MI

3,993

Population

1,457

Households

2.7

Avg Household Size

44

Median Age

19%

College-Educated

94%

High-School Grad

37.0 sq mi

ZIP Area

108

Density / Sq Mi

$79,375

Median Household Income

$40,778

Median Earnings

$845

Median Rent

$280,400

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Mixed-use property - Two-level configuration pairs commercial space with an upstairs living area.

Where is this mixed-use property located?

The property is located at 10973 Gratiot Street Casco, MI.

What is the asking price?

The asking price for this property is $295,000.

What are key features of this property?

This property features: 2,600‑square‑foot mixed‑use building on a 0.22‑acre parcel; Commercial area below with living space upstairs; Dedicated on‑site parking lot