Former Drug Store
For Sale
$2,995,000
1104 E Front St, Traverse City, MI 49686
C-3-zoned retail property with established co-tenancy and access to major area roads.
Property Size12,554 SF
Price / SF$238.57
Days on Market434
Property Features for 1104 E Front St
General Information
Standard status
Active
Size
12,554 SF
Property subtype
Retail
Building Details
Building Size
12,554 SF
Year Built
2017
Buildings
1
Stories
1
Listing Agency:
Marcus & Millichap | Detroit
(248) 444-6861
Listed By:
John Nuzman · License #(S):MI:6506045546
(248) 444-6861
Source:
Cpix.resimplifi
Added: Jun 23, 2025
Changed: Aug 29
Last Checked: Aug 29 at 9:00PM
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 Marcus & Millichap | Detroit
Investment Insights
Based on property information with market context.
Built in 2017, this 12,554-square-foot former drug store occupies a commercial retail building at the intersection of Front St. and M-37 (Garfield Ave.). The property is zoned C-3, Community Center District, and shares a lot with Starbucks and Hungry Howie’s.
The site is one mile east of downtown Traverse City and one half mile from Traverse City High School, Eastern Elementary, and Northwestern Michigan College. Front St. is identified as US 31 and carries an ADTC of 25,118. The property also sits along the route to the Old Mission Peninsula Wine Trail, which includes 10 vineyards along 19 miles of coastline. Traverse City has a population of 16,000, while Grand Traverse County’s summer population is 160,000.
The site is one mile east of downtown Traverse City and one half mile from Traverse City High School, Eastern Elementary, and Northwestern Michigan College. Front St. is identified as US 31 and carries an ADTC of 25,118. The property also sits along the route to the Old Mission Peninsula Wine Trail, which includes 10 vineyards along 19 miles of coastline. Traverse City has a population of 16,000, while Grand Traverse County’s summer population is 160,000.
Key Highlights
- 12,554‑square‑foot former drug store built in 2017
- C‑3, Community Center District zoning
- Intersection location at Front St. (US 31) and M‑37 (Garfield Ave.)
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
$167,807
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
5.60%
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%
$3,356,140
$3.4M
Cap Rate 7%
$2,397,243
$2.4M
Cap Rate 9%
$1,864,522
$1.9M
Market Conditions
NOI Build-Up for 12,554 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
$238.0K $18.96/SF
− Vacancy
−$14.3K −$1.14/SF
EGI
$223.7K $17.82/SF
− OpEx
−$55.9K −$4.46/SF
NOI
$167.8K $13.37/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
25.00%
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%
$3,356,140
Cap Rate 7%
$2,397,243
Cap Rate 9%
$1,864,522
Alternative Uses
Best Use
Specialty Retail
$2.40M
$2.10M – $2.80M
NOI $167,807 @ 7.0% cap · market cap 5.60%
Second Best
Retail
$2.22M
$1.94M – $2.59M
NOI $155,228 @ 7.0% cap · market cap 5.18%
Theoretical Best
Office A
$2.73M
$2.39M – $3.18M
NOI $190,901 @ 7.0% cap · market cap 6.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
656
Businesses Nearby
77k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 70%
Groceries 19%
Hotels & Casinos 8%
Shops & Services 3%
Starbucks
Dining
15,610 visits/mo
0.1 miles
Taco Bell
Dining
14,633 visits/mo
0.4 miles
Family Fare
Groceries
14,551 visits/mo
0.4 miles
Little Caesars Pizza
Dining
9,060 visits/mo
0.2 miles
Jimmy John's
Dining
7,341 visits/mo
0.2 miles
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Shoreline Center For Healing — 745 S Garfield Ave Suite C, Traverse City, MI 49686
- Ageless Nutrition — 801 S Garfield Ave, Traverse City, MI 49686
- Michael Lambdin — 511 S Garfield Ave, Traverse City, MI 496863423
- Tracy L. Haver, RPh — 511 S Garfield Ave, Traverse City, MI 49686, United States
- Kathleen A. Engstrom, RPH — 511 S Garfield Ave, Traverse City, MI 49686
Frequently Asked Questions
What type of property is this?
Drug store - C-3-zoned retail property with established co-tenancy and access to major area roads.
Where is this drug store located?
The property is located at 1104 E Front St Traverse City, MI.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: 12,554‑square‑foot former drug store built in 2017; C‑3, Community Center District zoning; Intersection location at Front St. (US 31) and M‑37 (Garfield Ave.)
