Building Details

Building Size 3,111 SF

Year Built 1960

Units 2

Listing Agency: The Brokerage House j***@gmail.com Show Phone

Listed By: JENIFER SCANLON · License #6501367704 Show Phone

Source: Phgrealty

Added: Jul 17 Changed: Aug 19 Last Checked: Aug 20 at 3:00PM

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Investment Insights

Based on property information with market context.

This mixed-use property combines 1,052 square feet of main-floor commercial space with a 912 square foot upper-level apartment. The commercial area includes a fully equipped kitchen, and the sale includes the kitchen equipment and related system improvements. The layout supports food-service and other service-oriented commercial operations, while the residential component is occupied by a long-term tenant.

Property improvements include a newer roof, fresh exterior paint, updated electrical service, new AC, two tankless water heaters, and substantial kitchen-system upgrades. The site also provides oversized parking and monument signage. Built in 1960, the property offers a combined commercial and residential configuration with established physical improvements.

Key Highlights

• 1,052 square feet of main‑floor commercial space
• 912 square foot upper‑level apartment
• Fully equipped commercial kitchen and included kitchen equipment

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

$29,559

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

7.39%

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%

$591,180 $591.2K

Cap Rate 7%

$422,271 $422.3K

Cap Rate 9%

$328,433 $328.4K

Market Conditions

NOI Build-Up for 3,111 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

$42.9K $13.80/SF

− Vacancy

−$3.5K −$1.13/SF

EGI

$39.4K $12.67/SF

− OpEx

−$9.9K −$3.17/SF

NOI

$29.6K $9.50/SF

Area

Jackson County, MI

Vacancy

8.20%

Lease Rate

$13.80 /SF/Yr

Expense Ratio

25.00%

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%

$591,180

Cap Rate 7%

$422,271

Cap Rate 9%

$328,433

Alternative Uses

Best Use

Specialty Retail

$422.3K

$369.5K – $492.7K (±1% cap)

NOI $29,559 @ 7.0% cap · market cap 7.39%

Second Best

Mixed Use

$368.3K

$322.3K – $429.7K (±1% cap)

NOI $25,782 @ 7.0% cap · market cap 6.45%

Theoretical Best

Office A

$496.6K

$434.6K – $579.4K (±1% cap)

NOI $34,764 @ 7.0% cap · market cap 8.69%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Commercial kitchens

Suggested Use

Top Pick Auto Parts Store Real Estate Agency Pharmacy Hair Salon Dental Office (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

122

Businesses Nearby

26k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 90% Dining 10%

Exxon Shops & Services

14,142 visits/mo 0.2 miles

Dollar General Shops & Services

7,272 visits/mo 0.3 miles

SUBWAY Dining

2,615 visits/mo 0.1 miles

BP Shops & Services

1,813 visits/mo 0.1 miles

Demographics for 49261, MI

356

Population

103

Households

3.5

Avg Household Size

35

Median Age

20%

College-Educated

77%

High-School Grad

0.7 sq mi

ZIP Area

509

Density / Sq Mi

$89,063

Median Household Income

$218,800

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Main-level business space is paired with an upstairs apartment and included kitchen equipment.

Where is this mixed-use property located?

The property is located at 124 Brooklyn Road Napoleon, MI.

What is the asking price?

The asking price for this property is $399,900.

What are key features of this property?

This property features: 1,052 square feet of main‑floor commercial space; 912 square foot upper‑level apartment; Fully equipped commercial kitchen and included kitchen equipment