Downtown Dundee Investment
For Sale
$279,700
120 Tecumseh St, Dundee, MI 48131
Versatile property in the heart of Downtown Dundee.
Property Size1,430 SF
Lot Size0.03 Acres
Days on Market257
Property Features for 120 Tecumseh St
General Information
Standard status
Active
Size
1,430 SF
Lot size
0.03 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,536
Building Details
Building Size
1,430 SF
Listing Agency:
KW Commercial GR East
(313) 920-8798
Listed By:
Hiba Saad · License #6501415190
(313) 920-8798
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:46AM
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 KW Commercial GR East
Investment Insights
Based on property information with market context.
This property presents an investment opportunity in Downtown Dundee, situated directly across from the City Square. The property features a spacious, open main level, offering a customizable space suitable for various business visions. The street level also includes a kitchen and restroom. Upstairs, there is an apartment, presenting a rental income opportunity or potential for owner occupancy. This versatile property offers potential in a desirable downtown location.
Key Highlights
- Prime Downtown Dundee location directly across from City Square.
- Versatile property suitable for business and residential use.
- Bonus income opportunity with upstairs apartment for rental or owner occupancy.
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
$13,739
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
4.91%
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%
$274,780
$274.8K
Cap Rate 7%
$196,271
$196.3K
Cap Rate 9%
$152,656
$152.7K
Market Conditions
NOI Build-Up for 1,430 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
$21.5K $15.00/SF
− Vacancy
−$1.8K −$1.28/SF
EGI
$19.6K $13.73/SF
− OpEx
−$5.9K −$4.12/SF
NOI
$13.7K $9.61/SF
Area
Monroe County, MI
Vacancy
8.50%
Lease Rate
$15.00 /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%
$274,780
Cap Rate 7%
$196,271
Cap Rate 9%
$152,656
Alternative Uses
Best Use
Retail
$196.3K
$171.7K – $229.0K
NOI $13,739 @ 7.0% cap · market cap 4.91%
Second Best
Apartment 5plus
$168.9K
$147.8K – $197.1K
NOI $11,824 @ 7.0% cap · market cap 4.23%
Theoretical Best
Warehouse
$1.47M
$1.29M – $1.72M
NOI $103,240 @ 7.0% cap · market cap 36.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
202
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48131, MI
8,126
Population
3,838
Households
2.1
Avg Household Size
37
Median Age
33%
College-Educated
95%
High-School Grad
50.1 sq mi
ZIP Area
162
Density / Sq Mi
$81,386
Median Household Income
$47,535
Median Earnings
$1,112
Median Rent
$246,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Versatile property in the heart of Downtown Dundee.
Where is this storefront property located?
The property is located at 120 Tecumseh St Dundee, MI.
What is the asking price?
The asking price for this property is $279,700.
What are key features of this property?
This property features: Prime Downtown Dundee location directly across from City Square.; Versatile property suitable for business and residential use.; Bonus income opportunity with upstairs apartment for rental or owner occupancy.
