Listing Agency: Coldwell Banker Schmidt Realtors | Traverse City Show Phone

Listed By: Sue Louiselle · License #6506046029 Show Phone

Source: Moodyscre

Added: Sep 4 Changed: Sep 6 Last Checked: Sep 7 at 10:12AM

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Investment Insights

Based on property information with market context.

This self-storage property includes 110 existing units, seven expansion pads, and approved plans for 440 additional fully approved storage units. The site spans over 5 total acres with 400 feet of frontage along US Highway 31 and includes an active U-Haul Dealership Pick up and Drop off site.

The portfolio also contains an adjacent parcel with two rental homes and a commercial pole building featuring offices, a bathroom, and commercial kitchen fixtures. The pole building is currently leased to a business that plans to continue leasing. Located directly across from Pellston Regional Airport, the property benefits from 6,266 AADT along the highway corridor and borders state land along the easterly line.

Key Highlights

• 110 existing self‑storage units
• 440 additional storage units approved across 7 expansion pads
• Over 5 total acres with 400' of US Highway 31 frontage

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

$119,763

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

6.84%

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%

$2,395,260 $2.4M

Cap Rate 7%

$1,710,900 $1.7M

Cap Rate 9%

$1,330,700 $1.3M

Market Conditions

NOI Build-Up for 7,560 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

$151.5K $20.04/SF

− Vacancy

−$10.6K −$1.40/SF

EGI

$140.9K $18.64/SF

− OpEx

−$21.1K −$2.80/SF

NOI

$119.8K $15.84/SF

Area

Emmet County, MI

Vacancy

7.00%

Lease Rate

$20.04 /SF/Yr

Expense Ratio

15.00%

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%

$2,395,260

Cap Rate 7%

$1,710,900

Cap Rate 9%

$1,330,700

Alternative Uses

Best Use

Warehouse

$1.71M

$1.50M – $2.00M (±1% cap)

NOI $119,763 @ 7.0% cap · market cap 6.84%

Second Best

Self Storage

$1.41M

$1.23M – $1.64M (±1% cap)

NOI $98,628 @ 7.0% cap · market cap 5.64%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Self storage facilities

Suggested Use

Top Pick Parking Lot & Garage Auto Repair Shop Real Estate Agency Travel Agency Bed & Breakfast Dental Office

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

42

Businesses Nearby

Explore this area Business Placement

Demographics for 49769, MI

1,642

Population

928

Households

1.8

Avg Household Size

43

Median Age

24%

College-Educated

96%

High-School Grad

57.0 sq mi

ZIP Area

29

Density / Sq Mi

$64,792

Median Household Income

$33,346

Median Earnings

$989

Median Rent

$152,800

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 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 self storage facilities 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?

Self storage facility - Self-storage operation with 110 existing units and approved plans for additional storage development.

Where is this self storage facility located?

The property is located at 1120 N US Highway 31 Pellston, MI.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: 110 existing self‑storage units; 440 additional storage units approved across 7 expansion pads; Over 5 total acres with 400' of US Highway 31 frontage