Historic Three-Story Mixed-Use
For Sale
$2,790,000
118 E Front St Traverse, Traverse City, MI 49684
Three-story building with ground-floor retail and flexible C-4B zoning for commercial or residential conversion.
Property Size9,045 SF
Price / SF$308.46
Days on Market66
Property Features for 118 E Front St Traverse
General Information
Standard status
Active
Size
9,045 SF
Total Parking Spaces
3
Property subtype
Street Retail
Zoning
C-4B
Additional Details
Clear Height
10 ft
Building Details
Year Built
1900
Stories
3
Listing Agency:
Three West LLC
(231) 929-2955
Listed By:
David J. Frost · License #6501203019
(231) 929-2955
Source:
Thebrokerlist
Added: Jun 7
Changed: Jul 10
Last Checked: Aug 11 at 4:39AM
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 Three West LLC
Investment Insights
Based on property information with market context.
The Iconic Wurzburg Building is a historic, three-story structure with a handsome natural wood facade and bay windows extended onto Front Street. The building features brick exterior elements and 10-foot-plus ceilings, with interior brick walls that could be revealed. A full basement provides additional space for storage and mechanicals, and private parking for three vehicles is located behind the building.
The property sits on the south side of E Front St between Union St and Cass St, within two blocks of downtown Traverse City. A designated crosswalk is located in front of the building, and the site includes ample parking behind the building, with both metered lots and parking spaces.
Designed for mixed-use possibilities, the ground floor is positioned for retail, while the upper floors can be developed as office or residential space in line with the C-4B zoning for commercial or residential use. For buyers and operators seeking a downtown presence with configurable interior space and downtown accessibility, the building’s layout and basement support can accommodate both current retail use and future reconfiguration of the second and third floors. “Possible tax credits” are referenced for the property within its historic district context.
The property sits on the south side of E Front St between Union St and Cass St, within two blocks of downtown Traverse City. A designated crosswalk is located in front of the building, and the site includes ample parking behind the building, with both metered lots and parking spaces.
Designed for mixed-use possibilities, the ground floor is positioned for retail, while the upper floors can be developed as office or residential space in line with the C-4B zoning for commercial or residential use. For buyers and operators seeking a downtown presence with configurable interior space and downtown accessibility, the building’s layout and basement support can accommodate both current retail use and future reconfiguration of the second and third floors. “Possible tax credits” are referenced for the property within its historic district context.
Key Highlights
- Historic 3‑story Wurzburg Building with 9,045 SF plus a full basement for storage and mechanicals
- Located on South side of E Front St between Union St and Cass St, within the two most desirable blocks of downtown Traverse City
- Ground‑floor retail with the option to develop the 2nd and 3rd floors into office or residential space
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
$111,840
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
4.01%
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%
$2,236,800
$2.2M
Cap Rate 7%
$1,597,714
$1.6M
Cap Rate 9%
$1,242,667
$1.2M
Market Conditions
NOI Build-Up for 9,045 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
$173.7K $19.20/SF
− Vacancy
−$13.9K −$1.54/SF
EGI
$159.8K $17.66/SF
− OpEx
−$47.9K −$5.30/SF
NOI
$111.8K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
30.00%
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%
$2,236,800
Cap Rate 7%
$1,597,714
Cap Rate 9%
$1,242,667
Alternative Uses
Best Use
Retail
$1.60M
$1.40M – $1.86M
NOI $111,840 @ 7.0% cap · market cap 4.01%
Second Best
Office B
$1.38M
$1.21M – $1.61M
NOI $96,872 @ 7.0% cap · market cap 3.47%
Theoretical Best
Office A
$1.96M
$1.72M – $2.29M
NOI $137,542 @ 7.0% cap · market cap 4.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10 ft
Clear height
Location Intelligence
Trade Area within ½ mile
2,080
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
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?
Storefront property - Three-story building with ground-floor retail and flexible C-4B zoning for commercial or residential conversion.
Where is this storefront property located?
The property is located at 118 E Front St Traverse Traverse City, MI.
What is the asking price?
The asking price for this property is $2,790,000.
What are key features of this property?
This property features: Historic 3‑story Wurzburg Building with 9,045 SF plus a full basement for storage and mechanicals; Located on South side of E Front St between Union St and Cass St, within the two most desirable blocks of downtown Traverse City; Ground‑floor retail with the option to develop the 2nd and 3rd floors into office or residential space
