Contiguous Mixed-Use Redevelopment
For Sale
$349,900
Pending
110 106 Locust Street, Allegan, MI 49010
COMMERCIAL - Allegan, MI
Property Size6,600 SF
Days on Market167
Property Features for 110 106 Locust Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
C1
Bathrooms
2
Full bathrooms
2
Rooms
Basement, Bathroom 2, Bathroom 1
Interior features
Broadband
Elementary school district
Allegan
Middle school district
Allegan
High school district
Allegan
Directions
M89 to Hubbard Street East to Downtown Business District. Left on Locust to address
Standard status
Pending
APN
51-205-018-00
Size
6,600 SF
Taxes and HOA fees
Tax Year
2025
Tax Description
* 2 parcels Combined see documents
Tax Annual Amount
7497
Legal Description
* 2 parcels Combined see documents
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1880
Number of units
4
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 8:06AM
MLS# 26007575
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.
For sale: two contiguous downtown properties located at 106 and 110 Locust Street in Allegan, Michigan, offered together as a combined redevelopment opportunity. The listing presents the project as having expanded potential through acquiring both neighboring buildings, providing flexibility for mixed-use redevelopment, commercial investment, or upper-level residential conversion.
The existing buildings are described as supporting a range of possibilities, including street-level commercial space with upper-level residential units, along with the option to pursue mixed-use concepts or phased improvements while maintaining income potential from existing commercial space.
The combined offering is listed at 6,600 square feet and is presented as a rare opportunity to reposition two adjacent downtown properties into a larger redevelopment project within Allegan’s downtown corridor.
The existing buildings are described as supporting a range of possibilities, including street-level commercial space with upper-level residential units, along with the option to pursue mixed-use concepts or phased improvements while maintaining income potential from existing commercial space.
The combined offering is listed at 6,600 square feet and is presented as a rare opportunity to reposition two adjacent downtown properties into a larger redevelopment project within Allegan’s downtown corridor.
Key Highlights
- Two contiguous downtown properties at 106 and 110 Locust Street offered together for redevelopment flexibility
- Brick construction with forced air heating and central air cooling
- Rubber roof and broadband available
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
$25,514
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
7.29%
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%
$510,280
$510.3K
Cap Rate 7%
$364,486
$364.5K
Cap Rate 9%
$283,489
$283.5K
Market Conditions
NOI Build-Up for 6,600 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
$45.4K $6.88/SF
− Vacancy
−$4.6K −$0.69/SF
EGI
$40.8K $6.19/SF
− OpEx
−$15.3K −$2.32/SF
NOI
$25.5K $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%
$510,280
Cap Rate 7%
$364,486
Cap Rate 9%
$283,489
Alternative Uses
Best Use
Office B
$1.04M
$908.9K – $1.21M
NOI $72,708 @ 7.0% cap · market cap 20.78%
Second Best
Retail
$978.8K
$856.4K – $1.14M
NOI $68,514 @ 7.0% cap · market cap 19.58%
Theoretical Best
Hotel Hospitality
$61.98M
$54.23M – $72.31M
NOI $4,338,657 @ 7.0% cap · market cap 1,239.97%
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
Explore this area
Business Placement
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 Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two contiguous downtown properties at 106 and 110 Locust Street are offered together for mixed-use redevelopment potential.
Where is this mixed-use property located?
The property is located at 110 106 Locust Street Allegan, MI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: Two contiguous downtown properties at 106 and 110 Locust Street offered together for redevelopment flexibility; Brick construction with forced air heating and central air cooling; Rubber roof and broadband available
