Four-Unit Residential Income
For Sale
Contact for pricing
1223 Terrace Street, Muskegon, MI 49442
Four renovated units with recent roof and boiler updates, including a vacant 1BR for straightforward showings.
Property Size4,000 SF
Price / SF$100
Days on Market112
Property Features for 1223 Terrace Street
General Information
Standard status
Active
Size
4,000 SF
Class
B
Property subtype
Retail, Multifamily
Zoning
RM-1
Additional Details
Multifamily Units
4
Building Details
Year Renovated
2022
Units
4
Tenancy
Multi
Listing Agency:
Bella Bay Realty
Listed By:
Kevin Cole · License #6501392397
(616) 575-1800
Source:
Crexi
Added: May 27
Changed: Sep 12
Last Checked: Sep 14 at 7:06AM
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 Bella Bay Realty
Investment Insights
Based on property information with market context.
This four-unit residential income property offers a mix of unit types across two-bedroom to three-bedroom layouts, with current rental amounts ranging from $850 to $1,200. Unit A is a large 1BR/1BA and is currently vacant, making it convenient for easy showings. Unit B is a 3BR/2BA, Unit C is a 2BR/1BA, and Unit D is a 1BR/1BA. Between 2021 and 2024, all units were fully remodeled, with a new roof installed in 2022 and a new boiler added in 2023.
The property is located at 1223 Terrace Street in Muskegon, near downtown, and the immediate area has been seeing renovation. The combination of updated interiors and relatively recent building systems supports a turn-key presentation for tenants.
For investors and owner-occupiers, the attraction here is straightforward: four separately tenanted units with completed remodel work and updated roof and boiler. With Unit A available now, qualified buyers and serious renters can evaluate the property in person without waiting for a current lease to expire. The seller notes long-term, on-time tenants and is seeking serious inquiries only.
The property is located at 1223 Terrace Street in Muskegon, near downtown, and the immediate area has been seeing renovation. The combination of updated interiors and relatively recent building systems supports a turn-key presentation for tenants.
For investors and owner-occupiers, the attraction here is straightforward: four separately tenanted units with completed remodel work and updated roof and boiler. With Unit A available now, qualified buyers and serious renters can evaluate the property in person without waiting for a current lease to expire. The seller notes long-term, on-time tenants and is seeking serious inquiries only.
Key Highlights
- 4‑unit investment property at 1223 Terrace St, Muskegon, near downtown
- All units fully remodeled between 2021 and 2024
- Vacant Unit A: $1,000/month large 1BR/1BA, available for easy showings
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
$34,641
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
8.66%
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%
$692,820
$692.8K
Cap Rate 7%
$494,871
$494.9K
Cap Rate 9%
$384,900
$384.9K
Market Conditions
NOI Build-Up for 4,000 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
$66.7K $16.68/SF
− Vacancy
−$3.7K −$0.93/SF
EGI
$63.0K $15.75/SF
− OpEx
−$28.3K −$7.09/SF
NOI
$34.6K $8.66/SF
Area
Muskegon County, MI
Vacancy
5.60%
Lease Rate
$16.68 /SF/Yr
Expense Ratio
45.00%
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%
$692,820
Cap Rate 7%
$494,871
Cap Rate 9%
$384,900
Alternative Uses
Best Use
Multifamily LT 5
$554.4K
$485.1K – $646.9K
NOI $38,811 @ 7.0% cap · market cap 9.70%
Second Best
Apartment 5plus
$494.9K
$433.0K – $577.4K
NOI $34,641 @ 7.0% cap · market cap 8.66%
Theoretical Best
Hotel Hospitality
$37.56M
$32.87M – $43.82M
NOI $2,629,489 @ 7.0% cap · market cap 657.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,276
Businesses Nearby
Explore this area
Business Placement
Demographics for 49442, MI
45,342
Population
17,759
Households
2.6
Avg Household Size
37
Median Age
11%
College-Educated
87%
High-School Grad
41.0 sq mi
ZIP Area
1,106
Density / Sq Mi
$50,069
Median Household Income
$33,257
Median Earnings
$889
Median Rent
$116,100
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Quadplex - Four renovated units with recent roof and boiler updates, including a vacant 1BR for straightforward showings.
Where is this quadplex located?
The property is located at 1223 Terrace Street Muskegon, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 4‑unit investment property at 1223 Terrace St, Muskegon, near downtown; All units fully remodeled between 2021 and 2024; Vacant Unit A: $1,000/month large 1BR/1BA, available for easy showings
