Mixed-Use Corner Retail
For Sale
$2,400,000
120 N 4th Ave, Ann Arbor, MI 48104
Fully occupied three-unit property with separate meters and rear parking on a high-visibility corner.
Property Size5,720 SF
Price / SF$419.58
Days on Market227
Property Features for 120 N 4th Ave
General Information
Standard status
Active
Size
5,720 SF
Total Parking Spaces
6
Property subtype
Office, Retail
Zoning
D1
Occupancy
100%
Building Details
Building Size
5,720 SF
Year Built
1910
Stories
2
Tenancy
Multi
Listing Agency:
Colliers - Ann Arbor
Listed By:
James H. Chaconas
(734) 994-3100
Source:
Cpix.resimplifi
Added: Jan 21
Changed: Sep 4
Last Checked: Sep 4 at 2:09AM
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 Colliers - Ann Arbor
Investment Insights
Based on property information with market context.
This 5,720-square-foot mixed-use commercial property is fully occupied and configured as three separately metered units, with two on the main level and one on the upper level. Tenants have convenient access via a rear parking lot.
The property is positioned on a high-visibility corner of E Ann St and N 4th Ave in the Kerrytown Market & Shops district. It is located in the Historic District and zoned D1 – Downtown Core District.
More information is available upon execution of a confidentiality agreement.
The property is positioned on a high-visibility corner of E Ann St and N 4th Ave in the Kerrytown Market & Shops district. It is located in the Historic District and zoned D1 – Downtown Core District.
More information is available upon execution of a confidentiality agreement.
Key Highlights
- ±5,720 SF commercial property built in 1910 with 3 units, fully occupied (100%).
- Two units on the main level and one unit on the upper level.
- All tenants are separately metered.
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
$67,748
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
2.82%
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%
$1,354,960
$1.4M
Cap Rate 7%
$967,829
$967.8K
Cap Rate 9%
$752,756
$752.8K
Market Conditions
NOI Build-Up for 5,720 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
$103.0K $18.00/SF
− Vacancy
−$6.2K −$1.08/SF
EGI
$96.8K $16.92/SF
− OpEx
−$29.0K −$5.08/SF
NOI
$67.7K $11.84/SF
Area
Ann Arbor, MI
Vacancy
6.00%
Lease Rate
$18.00 /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%
$1,354,960
Cap Rate 7%
$967,829
Cap Rate 9%
$752,756
Alternative Uses
Best Use
Retail
$967.8K
$846.9K – $1.13M
NOI $67,748 @ 7.0% cap · market cap 2.82%
Second Best
Mixed Use
$958.5K
$838.7K – $1.12M
NOI $67,096 @ 7.0% cap · market cap 2.80%
Theoretical Best
Office A
$1.26M
$1.11M – $1.47M
NOI $88,430 @ 7.0% cap · market cap 3.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,422
Businesses Nearby
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
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 - Fully occupied three-unit property with separate meters and rear parking on a high-visibility corner.
Where is this mixed-use property located?
The property is located at 120 N 4th Ave Ann Arbor, MI.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: ±5,720 SF commercial property built in 1910 with 3 units, fully occupied (100%).; Two units on the main level and one unit on the upper level.; All tenants are separately metered.
