Prime Development Site on Dixie
For Sale
Contact for pricing
12181 Dixie Hwy, Birch Run, MI 48415
2.46 acres on high-traffic Dixie Highway near I-75.
Property Size6,172 SF
Lot Size2.46 Acres
Price / SF$105.30
Days on Market183
Property Features for 12181 Dixie Hwy
General Information
Standard status
Active
Size
6,172 SF
Class
A
Lot size
2.46 Acres
Property subtype
Land, Mixed Use
Zoning
General Commercial
Occupancy
100%
Investment Type
Owner/User
Building Details
Year Built
1936
Buildings
6
Units
4
Listing Agency:
RE/MAX Platinum
(810) 397-5343
Listed By:
Stephan Brochu · License #6506046546
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 20 at 9:43AM
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 RE/MAX Platinum
Investment Insights
Based on property information with market context.
This commercial development opportunity consists of three contiguous parcels totaling 2.46 acres. The property is located on Dixie Highway, directly across from the proposed Birch Run Convention Center and just off one of I-75’s heavily traveled exits. The location provides exposure and accessibility for commercial uses. It is located minutes from northbound and southbound I-75 access and in close proximity to Birch Run Premium Outlets and Frankenmuth. The property is suitable for retail, hospitality, service, or mixed-use development. The offering includes three residential homes and two outbuildings/pole barns, all of which are currently tenant-occupied, providing immediate income while planning future redevelopment. The property's size, frontage, and surrounding growth corridor position it as a long-term investment.
Key Highlights
- 2.46 acres of contiguous parcels on high‑traffic Dixie Highway
- Directly across from the proposed Birch Run Convention Center
- Minutes from I‑75 access, Birch Run Premium Outlets, and Frankenmuth
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
$49,993
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
7.69%
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%
$999,860
$999.9K
Cap Rate 7%
$714,186
$714.2K
Cap Rate 9%
$555,478
$555.5K
Market Conditions
NOI Build-Up for 6,172 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
$88.9K $14.40/SF
− Vacancy
−$8.9K −$1.44/SF
EGI
$80.0K $12.96/SF
− OpEx
−$30.0K −$4.86/SF
NOI
$50.0K $8.10/SF
Area
Saginaw County, MI
Vacancy
10.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
37.50%
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%
$999,860
Cap Rate 7%
$714,186
Cap Rate 9%
$555,478
Alternative Uses
Best Use
Mixed Use
$714.2K
$624.9K – $833.2K
NOI $49,993 @ 7.0% cap · market cap 7.69%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.14M
$997.8K – $1.33M
NOI $79,822 @ 7.0% cap · market cap 12.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
231
Businesses Nearby
Explore this area
Business Placement
Demographics for 48415, MI
9,042
Population
3,790
Households
2.4
Avg Household Size
45
Median Age
22%
College-Educated
93%
High-School Grad
64.8 sq mi
ZIP Area
140
Density / Sq Mi
$76,311
Median Household Income
$42,343
Median Earnings
$895
Median Rent
$197,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - 2.46 acres on high-traffic Dixie Highway near I-75.
Where is this commercial land located?
The property is located at 12181 Dixie Hwy Birch Run, MI.
What is the asking price?
The asking price for this property is $649,900.
What are key features of this property?
This property features: 2.46 acres of contiguous parcels on high‑traffic Dixie Highway; Directly across from the proposed Birch Run Convention Center; Minutes from I‑75 access, Birch Run Premium Outlets, and Frankenmuth
