Renovated Mixed-Use
For Sale
$425,000
113 N Farmer Street, Otsego, MI 49078
COMMERCIAL - Otsego, MI
Property Size3,420 SF
Price / SF$124.27
Days on Market244
Property Features for 113 N Farmer Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
CBD
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 1, Bathroom 2, Basement, Bathroom 4, Bathroom 3
Elementary school district
Otsego
Middle school district
Otsego
High school district
Otsego
Directions
I-94 to US-131 North to Otsego exit W. Turn right on Farmer St. Building is on the left side of the street.
Subdivision
Greater Kalamazoo - K
Standard status
Active
APN
54-100-017-01
Size
3,420 SF
Taxes and HOA fees
Tax Year
2025
Tax Description
Per Title work
Tax Annual Amount
8186
Legal Description
Per Title work
Utilities
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1900
Floors in Building
2
Number of units
2
Building materials
Brick, Stone
Listing Agency:
Chuck Jaqua, REALTOR
(269) 381-7653
Listed By:
Joanne K Becker · License #6502342093
(269) 217-9878
Added: Dec 15, 2025
Changed: Aug 7
Last Checked: Aug 16 at 10:06AM
MLS# 25062860
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.
This mixed-use property contains a restaurant space within a brick-and-stone storefront originally built in 1900. The building has been renovated and restored, with a full kitchen suited to food preparation and service. Seating accommodates 65-70 guests, and the sale includes the real estate along with furniture, fixtures, and equipment.
The second floor provides a 900-square-foot apartment with two bedrooms and one bath. That residence was remodeled in 2022. Forced-air heating and central air serve the property, while a city parking lot is located near both the front and rear entrances.
The second floor provides a 900-square-foot apartment with two bedrooms and one bath. That residence was remodeled in 2022. Forced-air heating and central air serve the property, while a city parking lot is located near both the front and rear entrances.
Key Highlights
- Restaurant space with seating for 65‑70 guests
- Full kitchen and FF&E included with the real estate
- 900‑square‑foot, two‑bedroom apartment on the second floor
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
$38,039
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
8.95%
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%
$760,780
$760.8K
Cap Rate 7%
$543,414
$543.4K
Cap Rate 9%
$422,656
$422.7K
Market Conditions
NOI Build-Up for 3,420 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
$52.9K $15.48/SF
− Vacancy
−$2.2K −$0.65/SF
EGI
$50.7K $14.83/SF
− OpEx
−$12.7K −$3.71/SF
NOI
$38.0K $11.12/SF
Area
Allegan County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$760,780
Cap Rate 7%
$543,414
Cap Rate 9%
$422,656
Alternative Uses
Best Use
Specialty Retail
$543.4K
$475.5K – $634.0K
NOI $38,039 @ 7.0% cap · market cap 8.95%
Second Best
Retail
$507.2K
$443.8K – $591.7K
NOI $35,503 @ 7.0% cap · market cap 8.35%
Theoretical Best
Hotel Hospitality
$32.12M
$28.10M – $37.47M
NOI $2,248,213 @ 7.0% cap · market cap 528.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
249
Businesses Nearby
3k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 100%
Bobs True Value
Home Improvements & Furnishings
2,576 visits/mo
0.1 miles
Demographics for 49078, MI
9,483
Population
4,315
Households
2.2
Avg Household Size
41
Median Age
19%
College-Educated
92%
High-School Grad
49.5 sq mi
ZIP Area
192
Density / Sq Mi
$77,517
Median Household Income
$44,956
Median Earnings
$1,106
Median Rent
$189,600
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 - Renovated brick-and-stone property combines a restaurant-ready kitchen with an upstairs residential unit and nearby public parking.
Where is this mixed-use property located?
The property is located at 113 N Farmer Street Otsego, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Restaurant space with seating for 65‑70 guests; Full kitchen and FF&E included with the real estate; 900‑square‑foot, two‑bedroom apartment on the second floor
